In the Driver’s Seat: Hired and Non-Owned Auto Coverage

Driving the car around town by night
Driving the car around town by night

By Mike Drew, The Reschini Group

“Hey, would you mind running these supplies over to the client across town?” asked the supervisor to the employee.

And with that simple question, a series of insurance-driven dominoes began to fall that, before it was all done, taught some valuable lessons in liability coverage and unexpected exposure.

The employee used his own personal car to make the delivery, but struck another car in an intersection on the way, resulting in multiple injuries to a third party.  In the months to follow, ambulance bills, medical expenses, surgical costs, lost wages, and a variety of other financial considerations began to accumulate – but what determines who pays for them?

Well, that depends on whether the employer who made the initial request carried Hired and Non-Owned auto coverage.  This subset of commercial auto insurance addresses just what it says – it protects an employer should another party come after it for recovery damages involving cases where an employee drives a vehicle not owned by the employer.

Many business people don’t understand the need for this specialized coverage, assuming that the employee’s personal auto insurance would cover damages.  While it’s true that a driver’s personal auto coverage may be the first to be tapped, it may not be sufficient to cover the costs of injuries, ongoing medical treatment, pain and suffering, or a fatality.

If the person involved in an accident is driving the vehicle because of an employer, even if the employer does not own the vehicle, the employer will be pursued for damages beyond the employee’s personal auto coverage.  Hired and Non-Owned coverage provides the protection needed in such situations.

Be sure about your coverage.  The professionals at The Reschini Group are well versed in commercial auto insurance and how you can be adequately protected, based on your business’ specific situation.  Contact us to learn more.  Because, simply stated, the complex world of commercial auto insurance can’t be simply stated.

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.