Plugging the Gap: The Need for Drive-Other-Car Coverage

By The Reschini Group

If you take five seconds to think about it, the number of vehicles on the road at any given moment is absolutely staggering.  Then Fill the Gaps red sign with sun backgroundthink of the various types of drivers, the owners of those vehicles, the accidents that remain an ever-present possibility, and it becomes clear that car insurance is, by necessity, a very complex industry.

Here’s just one unique slice of that complex world.  If an employee of a company were provided with a company vehicle – and if that employee does not own a car of his or her own, and subsequently has no personal automobile insurance – then the employer has a real and potential liability exposure, should that vehicle be involved in an accident.

Drive-Other-Car coverage closes that particular gap for employees who do not have their own personal automobile insurance policy, when they are driving a “non-owned” vehicle for personal use.  The insured (the company that owns the vehicle) is not at risk; it is actually the employee without automobile insurance who is at risk, and this endorsement provides them with protection.  The full technical definition is as follows: Drive Other Car endorsement is a commercial auto endorsement designed to provide non-owned auto coverage under a commercial auto policy similar to that which would be provided under a personal auto policy.  A Drive Other Car coverage (broadened coverage for named individuals) endorsement is commonly used when an executive officer, for example, does not carry personal auto insurance because he or she is furnished a company auto. Coverage under the endorsement would come into play in the event the individual designated in the endorsement (including his or her resident spouse) is driving a non-owned auto for personal use. Coverage under the endorsement does not apply if the auto in question is owned by that individual or by any member of his or her household; or the auto is used by either of these individuals while working in a business of selling, servicing, repairing, or parking autos.

The best scenario, of course, is for any employee who may be driving a company-owned vehicle to carry his or her own personal automobile policy.  For those who don’t, however, Drive-Other-Car coverage can include coverage of liability, medical payments, uninsured motorist and physical damage.

Be sure about your coverage.  The professionals at The Reschini Group are well versed in these questions and how you can be adequately covered in any situation – including the myriad combinations of factors surrounding car insurance.  Contact us to learn more.

The idea, after all, is to get behind the wheel without getting behind the 8-ball.  And to do that, you need to plug all the gaps.


Copyright 2016 The Reschini Group

The Reschini Group provides these updates for information only.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Liable by Association: Understanding Professional Liability Insurance

By Mike Drew, The Reschini Group

The importance of professional liability protection to reduce financial exposure.
The importance of professional liability protection to reduce financial exposure.

A faulty assumption about insurance coverage related to job duties comes into play when one assumes he or she may be liable only when someone else suffers bodily injury, property damage, or personal injury.   The fact is, however, that’s what standard general liability coverage addresses.

If you are a professional – which covers everything from architect to home inspector, from attorney to physician, and from real estate broker to accountant, just to name a few – a special classification of liability insurance is required to handle other types of claims that may come against you, related to giving advice or providing a service that could cause a financial loss to a customer.  Membership in professional associations, some of which entitle an individual to list credentials as part of his or her name and identification, also point to the need for this type of coverage.

Errors and omissions, another way to refer to professional liability, is defined as follows:  “Errors & omissions in the U.S., is a form of liability insurance that helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder.”

For example, even a web programmer would be wise to have professional liability insurance.  How so?  Say the programmer delivers a website to a client, but if that platform did not perform properly – getting e-commerce transactions wrong, or not letting visitors to the site navigate to their intended destinations, resulting in lost revenue and a damaged reputation – the client could file a claim against the programmer, based on negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

A general liability policy would not be sufficient, since no one got physically hurt and no property had been damaged, so if the professional programmer only had this level of coverage, he or she would face a financial exposure that easily could have been avoided with the right policy.

Be sure about your coverage.  The professionals at The Reschini Group are well versed in these questions and how you can be adequately covered in any situation – including the ways in which you apply your professional expertise.  Contact us to learn more.

You’ve worked hard to achieve your professional recognition.  It’s worth protecting, with the proper level of coverage.


Copyright 2016 The Reschini Group

The Reschini Group provides these updates for information only.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.