Do you have any employees that drive their own car while doing business for your company, even if it’s just an errand? If they’re involved in an accident in that situation, their insurance is primary. However, what if their insurance has lapsed, or their liability limits are low? Then your business could be responsible for any injury or damage they may cause.

Here’s what you can do to limit your exposure. For those who might be asked to drive on company business, maintain a folder containing a copy of their valid driver’s license, current motor vehicle record and auto policy with adequate liability limits of at least $300,000 preferably $500,000. Update the information once a year and discontinue business use driving if non compliant.

For your protection, make sure your business insurance includes Non-Owned Auto Liability coverage on your business auto policy or a rider to your property-general liability package policy. That coverage is usually written hand in hand with Hired Auto Liability which covers any auto you lease, hire or borrow. The cost is minimal.

If you are looking for more information concerning this topic or if you have questions about business property-casualty insurance in general please contact me toll free at  877-213-8875 or e-mail kfrancis@easterninsurance.com

Kevin Francis
Certified Insurance Consultant
Eastern Insurance Group