Do you own a business and occasionally have employees use their own vehicle for certain tasks related to your business?

If you answered yes, you’re going to want to read the rest of this post! You might require extra car insurance coverage to protect yourself and your business, and you don’t want to be caught without it!

Non-owned auto liability insurance coverage

What exactly is non-owned auto liability insurance coverage? This type of car insurance policy is a form of coverage that applies to an employee using their own vehicle to conduct business for the company. It’s meant to protect the business owner, not the employee. The policyholder (the business owner) doesn’t own, lease, or contract the vehicle.

Who needs this coverage?

If non-owned auto liability coverage sounds confusing, don’t worry. Here’s a simple example of when this coverage could be useful:

You own a business and your employee uses their personal vehicle to make a delivery to a client for your business. On their way, they’re in an accident. Even though you don’t own the vehicle, because it was used for YOUR business, non-owned auto liability coverage can apply.

When an accident happens during the course of business operations or at your request, this policy can provide your business with critical coverage for any gaps in liability insurance.

Depending on the circumstances surrounding the accident, the employee driving the vehicle could still be liable for certain damages.

Buying non-owned auto liability coverage

Non-owned auto liability coverage is usually a component of a commercial general liability policy. You won’t typically find it as a standalone form of coverage.

We also remind you that this protection applies to the business, not the employee driving their vehicle. When the employee is at fault for the damages or the accident, non-owned liability coverage could go toward repairing the other person’s vehicle, not necessarily the employee’s vehicle.

Business owners need comprehensive protection to make sure their business has the coverage they need. Contact ASA Insurance today to learn more about the right home, auto, and business insurance options for you.