When putting together an insurance program for a business, many that require vehicle transportation of any type will find themselves in need of some type of automobile coverage. In the case of commercial auto insurance, however, this is often strictly covering any vehicle which the business has ownership over. If your business makes use of rental services or employee’s private vehicles, then you may want to consider acquiring non owned auto insurance. If you do, you’ll be protected financially in the case of damage or injury resulting from an accident while an employee is driving a non owned or hired vehicle.
What Is the Coverage?
When it comes to most non owned auto insurance policies, there are specific vehicles and situations that are covered.
Non owned auto: vehicles that are privately owned by employees or clients that are driven while doing business for the company.
Hired auto: vehicles that have been rented or are used through a staffing firm.
Physical damage: harm done to the car that is not owned by the company but being used for business, or any third party vehicle or property involved in a case where an employee causes an accident with these vehicles.
Bodily injury: any medical damage done to a person involved in an accident caused by an employee driving a non owned or hired vehicle.
Defense and claims costs: if legal action is taken by a third party involved in any aforementioned situation, then claims, attorneys and other legal fees can be covered with the insurance.