Buying insurance is a necessity, but most business owners don’t make the effort to become familiar with what is actually written in their policy. They may not want to take the time to ask questions to understand industry jargon or line-by-line coverage. To be truly protected, however, you should make sure that hired non owned auto insurance is included as a part of your policy.
You Could Have Hidden Liability
What many business owners don’t realize is that even if their employees drive their own cars, the business owner could have liability if an accident occurs. This is true even if the employee is only running short errands. If an employee does not have enough liability coverage on his or her personal policy to cover a claim, the extra expense may fall on your business. The situation can become even more serious if you had prior knowledge that your employee might not be fit to drive for any reason; for instance, if he or she had a drinking problem.
Some common situations where a business can be sued following an auto accident involving an employee:
- A run to the post office
- Commuting to another work site, common with staffing agencies
- Renting a car while on a business trip
Hired non owned auto insurance can be added to your business auto policy, or even your business liability policy, at economical rates. Often this important coverage costs less than $100 a year for up to $1,000,000 in protection. Don’t leave your business exposed.