Does your school have potential automobile loss exposures that you are unaware of? What about the possible loss from employees operating their vehicles for company business?

Many situations present the potential for you to be held accountable for the actions of your employees while they are driving their own vehicles.

• Do administrative employees use their vehicles to go to the post office or bank on your company’s behalf?
• Do you occasionally send an employee to pick up a visiting client?
• Have you sent employees to pick up lunch, drop off mail, or pick up office supplies?
• Have you ever rented a vehicle while on a business trip?

If an employee has an accident in any of these situations, your business can be held accountable and sued for damages. However, business automobile policies only cover employees operating company-owned vehicles to perform company business.

Your best protection: non-owned and hired automobile liability coverage. This type of coverage will kick in if there is an accident and your company is found legally liable. Specifically, an employee’s automobile insurance will provide primary insurance to both the employee and the business if the employee uses their vehicle on company business. However, there is the chance that charges will exceed the employee’s policy limit and be passed on to the company. You may be vulnerable to potentially costly exposure without non-owned and hired automobile liability coverage.

Non-owned and hired automobile liability insurance covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or caused by non-owned vehicles (vehicles owned by others, including cars owned by your employees). This coverage is typically added to your business automobile policy but can be added to your general liability policy if you do not have one. I protect your company if it is found legally liable due to an automobile accident you or your employee has in a hired or non-owned vehicle while on company business. H red automobile coverage replaces or augments the liability coverage offered by automobile rental agencies.