When employees use personal vehicles for work-related tasks, businesses face a potential risk known as “non-owned auto” exposure. This term refers to the potential liability a company might shoulder if an accident occurs during company time, even in an employee’s own vehicle. USMC Insurance, a managing general agent specializing in these types of policies, knows a thing or two about these types of situations and seeks to educate the public about best practices.

Personal auto insurance policies typically cover both the vehicle’s owner and anyone permitted to drive the car. However, many commercial auto insurance policies do not extend this coverage. In such cases, non-owned auto insurance can fill this crucial gap.

Non-owned and hired automobile liability insurance covers bodily injury and property damage caused by a vehicle hired by the company or an employee’s vehicle. However, it’s important to note that this insurance does not cover damage to the employee’s vehicle itself or medical expenses if the employee is injured in an accident. For these costs, a separate personal auto insurance policy is necessary.

Some businesses require employees who drive for work to carry a personal auto policy with at least $500,000 in liability coverage. There are instances where employees may have low limits, which may not sufficiently cover damages in an accident. This is another situation when non-owned auto insurance comes into play, safeguarding these vehicles and the employees who drive them.

Anytime employees utilize their personal vehicles for work purposes, having non-owned auto insurance can protect a business from potential liabilities and financial loss. 

About USMC Insurance:

Founded in 2012, USMC Insurance is a managing general agent (MGA) providing both specialized and traditional property and casualty insurance. This family-owned company draws on over 100 years of combined experience to offer business insurance programs to brokers and agents across the nation, with a special interest in underserved niche markets.