Businesses that don't have company owned cars may still need commercial auto insurance if they use vehicles for work-related purposes. Specifically, they might need a hired and non-owned commercial auto insurance policy. Here's a look at what this coverage is and what types of businesses may need it.
Coverage for Non-Owned Vehicles
Hired and non-owned commercial auto insurance offers insurance protection for vehicles that are used for work purposes but that a company doesn't own. Most policies offer only liability protection, leaving it up to the individual or organization that owns the vehicles used to provide comprehensive and collision coverage for the vehicle.
If an employee is driving a vehicle that they own or another company owns for work-related purposes, this insurance will usually cover any accidents the employee causes and is found responsible for. The types of vehicles that a policy may be used to insure include:
Coverage Businesses Need
In providing coverage for vehicles that a business uses for work but doesn't own, hired and non-owned commercial auto insurance offers a protection that businesses need.
Since businesses are often held responsible for employee actions while employees are working, a busines might be held financially liable for any accidents employees cause while driving for work. This insurance helps protect against claims that an employee-caused accident involved property damage or personal injury that the business should provide compensation for.
Some types of businesses that have employees drive non-company cars for work include:
(This is not an exhaustive list of the businesses that may need hired and non-owned commercial auto insurance.)
Coverage That's Available Several Ways
Businesses that need commercial auto insurance coverage have four main ways ot procure coverage. They can:
12 July 2017
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