Safeguard Your Company With Hired or Non-Possessed Car Insurance Coverage

September 10, 2013

For a lot of smaller businesses, “workInch is wherever the job is. Which, obviously, requires travel – frequently, by vehicle. Whether both you and your employees drive your personal automobiles, your business has company cars, or else you rent a vehicle to obtain around, understanding what type of commercial auto insurance you have to safeguard your business could be tricky.

Additionally to non-public vehicle insurance and rental vehicle insurance offered by accommodations vehicle agency, you will find two other kinds of automobile insurance you must know about: hired auto and non-possessed auto insurance coverages. Both could be added as endorsements in your general liability insurance policy.

Company Car Insurance

Hired Auto Insurance Coverage

Safeguard Your Company With Hired or Non-Possessed Car Insurance Coverage

Whenever you, the business, or your employees comes with an accident inside a rental vehicle, three different insurance guidelines could possibly come up. First, the driver’s own auto liability still is applicable, just like if they were driving her very own vehicle. So, should there be any sort of accident, the worker is personally responsible for injuries or damage to property with other parties.

The motive force could also have hired vehicle physical damage coverage in their or her very own personal auto insurance policy, which may cover any physical harm to accommodations vehicle. Be cautious, though, as some “comprehensive” and many “limited” personal auto insurance guidelines don’t include hired vehicle coverage.

Second, there is the rental vehicle agency’s physical damage coverage and liability that you’re offered during the time of rental.

And third, there’s hired automobile coverage – one more coverage that either supplements or replaces a vehicle rental agency’s liability, by safeguarding your company in case of a suit caused by any sort of accident.

Because hired auto insurance only covers liability for your company – not physical damage – it’s usually a good idea to be certain the motive force has hired vehicle physical damage coverage in their or her very own policy, in order to buy the rental agency’s physical damage coverage if you or perhaps an worker rents a vehicle.

Non-Possessed Auto Insurance Coverage

If both you and your employees typically drive for business reasons using personal automobiles, you will want to learn about non-possessed auto coverage. This kind of insurance safeguards your company against legal cases that could arise when your employees comes with an auto accident while driving an individual vehicle on company business.

Just like hired auto coverage, the driver’s personal liability insurance still is applicable when the driver themself is prosecuted, and also the driver’s personal auto damage to property insurance should cover any physical damage caused by any sort of accident. What non-possessed auto coverage does is safeguard your business when the other party active in the accident decides to file a lawsuit your company.

Will I Require It?

To safeguard themselves against any liability caused by an auto accident triggered through the or your employees while focusing on a customer project, some clients may need your business to hold auto liability. Typically, such coverage is needed in contracts with language for example: “Contractor shall carry bodily injuries, damage to property, and automobile contractual liability for possessed, hired and non-possessed autos having a combined single limit of liability for every accident of not under ,000,000.”

But even when your customers do not require it, hired and non-possessed auto coverage might be a wise investment. If the worker of the company comes with an auto accident in their own individual vehicle or perhaps in a leased vehicle during company business, as well as their personal insurance isn’t enough to pay for the claim, your company could be held accountable for that excess amount. Not to mention, almost always there is the danger that the company itself is going to be prosecuted.

While the price of these kinds of claims can be quite high, the price of safeguarding your business against all of them with hired and/or non-possessed auto insurance is extremely low – usually under 0 each year.

Safeguard Your Company With Hired or Non-Possessed Car Insurance Coverage

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