My employees use their own car for work… I on the hook?

Many employers have their employees do things outside of the office and use their own cars to do it. Happens all the time, no big deal right? Hey they are just going to the post office to pick up mail or running to the local office supply place to pick up ink. What most employers fail to realize is that the employer is on the hook for the liability if the employee was to get in to some kind of accident and they are at fault. Your employee may just be running an errand and they get into an accident with another car or possibly hit a pedestrian or whatever the case may be and even though they are using their own car, because it is for business purposes, the business is responsible.

To protect the business from this type of liability, the company would purchase Hired/Non-Owned Auto Liability coverage. This type of coverage is usually included with your General Liability or Commercial Auto policy, but can be purchased as a stand alone policy. The hired auto coverage is to protect you in the event you rent a car or truck for business use. This coverage does NOT cover the physical damage (comprehensive or collision coverage), it only covers the liability portion. The non-owned auto coverage protects you in the event you are liable for something in a car NOT OWNED by the business. As in the example above, your employee is using their personal car to run a business errand. Once again you are not covering the physical damage of the non-owned car, just the liability.

This is an easy coverage to add or get, however it is also an easy one to overlook and it could be devastating to a business if you are sued for this kind of accident and do not have any coverage. You have all seen the TV commercials and billboards with attorneys looking for people who have been in accidents with business vehicles so they can go after the business assets. Not saying attorneys are bad for doing this, but with this being the case, why would you not make 100% sure you are protected from it.

For more information about Hired/Non-Owned Auto liability coverage, please contact us at 985-892-3101 or at


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