Maybe the daily deposit needs to be taken to the local bank branch. Or maybe you need an employee to run to the local hardware store to get a few more supplies for the project you are working on right now. One of your favorite employees offers to go, jumps in their car and heads out. You are simply thrilled that they are such a team player. This is true! At the same time, you should be thinking about your insurance coverages.
If anything happens while that employee is out on “work business” then you may be liable. Please check your policies to make sure it has Non-Owned Auto liability coverage. This is for a vehicle that is owned by an individual other than the company, but is used on a company’s behalf. It is intended for those “incidental” accidents – such as those that might occur when you send an in-house employee on an errand to by lunch or go to the bank. If you have a ‘non-owned auto’ policy does it protect your employees while running business errands in their personal car or just protect the employer? Non-owned auto coverage protects your company in the event your company is sued as a result of an auto accident that you or one of the employees has in a personal vehicle while on company business. This coverage DOES NOT protect you or the employee personally. Usually an employee’s personal auto policy will provide insurance to the employee, however, some personal auto policies now exclude business use. Also, you must make sure that your limits are high enough to cover you personally, if an accident should occur. Non-Owned Auto coverage is typically added as an endorsement on a Business Owners policy.
These situations could potentially happen to you, and it is important to always check with an independent insurance agent to see what is covered and how to go about dealing with these types of situations as there may have been other options to manage these risks.
We are happy to help. Feel free to reach us at www.keslarinsurance.com or 603-273-0953.