There are many situations in which an employee drives his or her personal auto to perform a business-related task or activity. They may be traveling between worksites, visiting clients, transporting clients, traveling home from work-related events and even making quick stops to pick up food for a meeting.  In some cases, even making a work-related phone call from an employee-owned vehicle may be considered a business-related activity in a personal auto.

Driving a personal auto in lieu of a company-owned vehicle may seem to minimize an employer’s liability, but companies can be held liable and brought into a lawsuit in the event of an employee-owned vehicle accident.

Any company that allows or requires employees to use their personal vehicles for business should either purchase hired and non-owned auto coverage or add it to an existing automobile policy.  Hired auto insurance provides coverage for situations involving vehicles not owned by the company or employee.  Non-owned auto insurance provides liability coverage when vehicles owned by employees are used for company business. These policies provide liability coverage for the company only; they do not provide coverage for the car or the driver.

If you have employees driving their own vehicles for business-related activities and would like more information about the coverage options available to your business, contact us. We'd be happy to discuss your coverage options and match them with your needs.