Business owners, imagine this scenario: Fast-forward five months. It’s a cold December day, and you send an employee to mail a few last-minute Christmas gifts for your customers. Moments later, you get a slurry of texts: There’s been an accident.
Via text, your employee explains that he or she was in a hurry, and had been speeding. Approaching a red light, he or she braked, only to hit black ice and slide right into another car. The car in front jumped the curb and smashed into the porch of a house, damaging both the vehicle and the property. It all happened that fast. Fortunately, no one is badly hurt – although the driver of the vehicle your employee rear-ended did hit his head on the steering wheel, causing concern about a concussion.
You go down to check out the scene. You see the ambulance, destroyed porch steps and a rear ended car. Your employee that was driving has good insurance, and for their sake, that’s a good thing: the employee’s auto insurance will be the primary coverage for the accident. However, the driver that got rear ended might view your company as being additionally liable. In this scenario, non-owned auto insurance would come into play.
With Erie and Warren Weiss Agency, a non-owned auto insurance covers the liability associated with a vehicle driven by an employee for business purposes. In the event your business is named in the lawsuit, this is where your business protection exists.
Similarly, a hired auto policy covers any vehicle that you borrow or rent for business use. For example, if you rent a car from Enterprise and purchase additional insurance for the vehicle, many times the policy is necessary, because you are already covered with your hired auto policy. Therefore, if anything happens to the rented vehicle when using it for business, it will be covered up to you’re the limits outlined by your policy. Only if you exceed those limits will the insurance from the rental company be necessary, and pay the rest.
If your business has a commercial vehicle policy of any kind, you should be covered under the hired and non-owned auto policies. These two coverages are additional but they are very affordable. Call us today to double check your coverages.