Non-Owned Vehicle Insurance For Businesses

You know that insurance is important to protect all your business risks. Covering employee drivers should be a top priority for any business owner.

If an employee has a wreck while driving for business purposes, any claimed damages or injuries may hurt the business' finances. Most business owners can consider different insurance options when covering business driving risks.

There are two common options: Commercial Auto Insurance and Non-Ownership Coverage.

Who Needs Commercial Auto Insurance?

This type of insurance has higher coverage levels than a standard auto insurance policy. It is better equipped to protect business assets.

Many business owners hesitate when deciding who to cover with commercial auto insurance. Generally, the following instances warrant commercial auto insurance:

Company-owned vehicles need commercial auto insurance. They are business assets.
All employees who drive a company-owned vehicle need coverage. Personal auto policies won't apply here.

But, there is a gray area to commercial auto insurance. Should you buy commercial coverage for drivers who use personal vehicles for business?

Employees who routinely use private cars for business can enjoy commercial auto insurance. For example, if an employee uses their car as a primary business mechanism, they likely need commercial auto insurance. Realtors or traveling salespeople likely fall into this category.

Non-Ownership Coverage

Yet, not every personal vehicle someone uses for business needs a commercial auto policy. People who only occasionally use personal vehicles may not need a heightened level of coverage.

When an employer doesn't own an employee's vehicle, but the employee still uses the vehicle for business tasks, it's prudent to get non-ownership coverage to cover business liabilities.

This coverage protects business cars not owned by the company. It also adds liability protection to employees without being a full-fledged commercial auto policy.

Non-ownership coverage can be used in a variety of situations. For example, a company owner might need it if they dispatch an employee to deliver a contract or goods to a client.

In this scenario, a person is driving for business purposes, but driving isn't a regular part of their duties. Should the employee have an accident, he or she could harm another person, the company, or the client. When driving, an employee is a representative of the company he or she works for. Potential damages could impact the business.

Non-ownership coverage helps protect a business from risks in the event an employee gets in a wreck in a private car. If the employee's personal auto insurance policy won't cover all the damages, the business won't be burdened with the extra costs.

If you have employees who drive for business purposes, talk to your insurance agent. Your agent can help you decide if commercial auto insurance or non-owners insurance is better for your company.

We can help. Call Integrity Network Insurance Group, LLC at (844) 524-4744 for a commercial auto or non-ownership insurance quote today.

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