Employer's Non-Owned coverage provides Liability insurance when your employees occasionally use their vehicles to run errands for your business. Employer's Non-Owned Coverage extends the Liability coverage you have on your commercial policy to your employees' vehicles.
Who needs employer's non-owned coverage?
If you occasionally have employees drive their vehicles for business related tasks, such as delivering an invoice or driving to the hardware store, you probably need Employer's Non-Owned coverage. It could provide Liability insurance if the employee becomes involved in an accident along the way.
If you regularly use your employees vehicles in your business, those vehicles should be listed on your commercial auto policy.
Employer's non-owned coverage example:
You're at a work site when you realize you're running short on hex bolts. You send your employee, Joe, to the hardware store to pick up some extras to help get the job done.
On his way to the store, Joe rear ends the car in front of him.
The other car's bumper is damaged, and the other driver has a sprained wrist.
Since Joe was driving for work, Joe's personal auto insurance might refuse to pay the bill. Fortunately, you selected Employer's Non-Owned coverage and have a $300,000 combined single limit.
Your Non-Owned Auto insurance would pay the following:
- $1,500 medical bill for the other driver's wrist X-ray
- $1,000 bill to replace the other car's bumper
Since your total expenses are well below your $300,000 combined single limit, the above expenses would be completely covered by your insurance.
Requirements and restrictions
You must carry Liability insurance on your commercial auto policy to carry Employer's Non-Owned coverage, and the limits you select for each must match each other.
You can carry Employer's Non-Owned coverage along with Hired Auto coverage. But you can't carry Employer's Non-Owned coverage if you also carry Any Auto coverage, since it's already included with Any Auto coverage.
Call us directly or talk to your agent if you have any questions about your individual needs.