03/02/10

Hired & Non-Owned Autos

 

ACTUAL CLAIMS SCENARIO:  An employee was operating his personal vehicle on an errand for his boss when he struck a middle-aged pedestrian moving in a crosswalk.  This loss exposed the company to a lawsuit and damages in excess of $1 Million. 

Do you have coverage for hired and non-owned automobiles?

Many companies misunderstand the risks related to the use of personal or “non-owned” vehicles for organization or company business.

Whether you have an employee “running an errand” to pick up office supplies or routinely using their personal car for sales and service calls, the company is ultimately responsible for the consequences of their driving.   In my experience, some of the largest and most expensive claims are related to hired and non-owned auto exposures.

Managers and owners need to be certain that individuals who drive their personal cars for company business are screened, trained and have adequate insurance coverage.  Make sure you are covered.  For more information about the hired and non-owned autos used in your business, call Elliott, Powell, Baden & Baker today.