Imagine: you ask your employee to run an errand for you. The employee uses their personal vehicle, and gets into an accident with another vehicle. Unfortunately, the employee has minimum coverage for their vehicle. The other vehicle’s driver not only sues your employee, but your company since they were running an errand for you.
Without hired/non-owned auto liability coverage, if your employee’s auto limits are not sufficient, your company will not be covered.
What is Hired/Non-Owned Auto Liability?
Hired Auto Liability: Used for autos the insured has leased, hired, rented or borrowed. It does not include rented, leased, hired or borrowed autos from any of the named insured’s employees.
Non-Owned Auto Liability: Not used for autos the insured has leased, hired, rented or borrowed. It includes autos owned by employees, but used in the insured’s business or personal affairs.
What may be a minimal expense could save your business in the end.