If your employees drive their own cars for business purposes, your business could be liable for property damage and bodily injuries resulting from a traffic accident in which an employee was at fault.
Sometimes business owners don’t notice they have this exposure, but it is important to know about. Consider these scenarios:
• Your office manager stops by the office supply store to pick up some items for work on her way back from lunch.
• On the way home, a supervisor stops by a client’s office to leave a product sample.
• While on vacation, a salesperson driving his personal vehicle makes a brief stop to visit a customer.
These are all situations where a business can find itself liable for an auto accident when employees drive their own cars. So companies have to be aware that resulting damages may exceed the policy limits in employee personal auto policies.
To protect your business from these liability risks, you can add the “Non-owned Auto Liability Endorsement” to your business auto coverage. It provides coverage when employees drive their own vehicles on business. This coverage exceeds the limits provided by the employee’s personal auto coverage.