Non-Owned Auto Liability Coverage: What You Should Know

Do you ever use your own vehicle to run the occasional errand for work? Or maybe you own a business and sometimes ask your employees to use their own vehicle for certain tasks.

If either of these situations apply to you, you might need extra auto insurance coverage to protect yourself and your business!

What is non-owned auto liability insurance coverage?

A named non-owned auto insurance policy is a form of coverage that applies to the use of a vehicle utilized for a policyholder’s business, but that vehicle isn’t owned, leased, hired, rented, or borrowed by the policyholder.

Who needs a non-owned auto liability coverage policy?

We know the definition of non-owned auto liability coverage might sound confusing, so here’s a simple example of when this coverage could be useful:

You are a business owner and your employee is running an errand for your business (such as dropping off a bank deposit or another delivery) in their personal vehicle, and they’re in an accident.

Because this accident happened during the course of business operations or at your request, a non-owned auto insurance policy can help cover your business for any gaps in liability coverage.

Depending on the nature of the accident, the employee driving the vehicle may still be liable for some damages.

What else you should know

Non-owned auto liability coverage is often part of a commercial general liability policy — it doesn’t tend to be a standalone form of coverage.

It’s also important to remember this coverage helps protect the business, not the employee driving. So, if the employee is at fault for an accident that damages another vehicle, this coverage could help cover damages to the other vehicle, but not necessarily the employee’s vehicle.

That’s why it’s so important to have adequate coverage on your personal auto insurance policy if you’re an employee using your vehicle for the occasional business errand.

To learn more about all kinds of auto insurance and what kind of coverage would be right for you, get in touch with Lupton and Luce Insurance today!