One of the biggest claim exposures a business faces involves having on-road vehicles, which makes Hired & Non-Owned Auto Liability Coverage one of the most important insurance coverages your business should consider.
Hired Auto Liability comes into play when renting a vehicle for your company. Hired Liability extends liability coverage for rented vehicles (or hired vehicles). Please note this does not cover the physical damage to the rented vehicle. You must purchase Hired Auto Physical Damage Coverage from either your insurer or the rental company. However, physical damage coverage provided by the rental company is broader than that offered by your insurer (reference October 2010 Common Cents Insurance Tip).
Non-Owned Auto Liability presents an even greater claim exposure. When any employees use their personal vehicle for your business, such as visiting clients, picking up mail, supplies or even lunch for the office staff, it creates a business liability exposure. The employee’s personal automobile policy provides primary liability coverage if they are involved in an accident. Non-owned Liability enhances the business auto policy by providing coverage to the business for resulting liability claims associated with the employee’s actions on behalf of your business. This also applies to volunteers or even friends running errands for your business as a favor.
As always, if you have questions or feel we can be of service, call Pinnacle Group Insurance at 412-816-1000.