When Employees Use Personal Cars While Working
It’s not a big deal. Sometimes I have to send an employee to get supplies when we run low. She takes her own car, but she has auto insurance. So I’m good. Actually You may not be!
I know it seems like a technical non-issue, but it really isn’t and you could be opening yourself up to a liability issue as a business owner. When employees use their own personal car while working for you they’re representing your company and in turn exposing you to the risk of property damage or injury to others while doing so.
So What Do I Do?
Purchase A Business Vehicle
It may seem simple, but if you find yourself sending employees out more and more on errands, or short stints to a customer site you may consider getting a business vehicle for them to use. Purchase commercial auto coverage with recommended one million combines single limits for property damage and liability. It’s also a good way to promote your business!
Non-Owned / Hired Auto Insurance
If you don’t supply employees with their own business vehicle consider buying or adding what is called Non-Owned Auto / Hired Auto Insurance coverage. It protects your business if an employee injures someone, or damages someone’s property. Coverage can usually be added to your existing commercial package and for not a lot of money. The hired part of the coverage protects you when you rent a vehicle like a box truck.
In the end it’s all about protecting you and your business. So ask your agent for more information if you feel this is something you may need.