Many firms and some insurance agents do not think about this coverage. But even if the only thing a firm employee does is take money to the bank using their car, you need this endorsement. If you or your employees use vehicles for any business purpose, you should make sure that this endorsement is added to your business owners policy or your commercial auto policy.
The Hired and Non-owned Auto endorsement is designed to protect the firm's liability if a firm employee is involved in an auto accident on company business using their personal or a rented vehicle. This exposure is there even if your firm owns no vehicles. Any time an employee uses a vehicle for company purposes the firm can be found liable. Without this coverage the firm’s assets can be exposed.
The general rule is that if the firm has a commercial auto policy this endorsement is best attached to that policy. If the firm does not have a commercial auto policy this endorsement should be included with your business owners policy.
It is important that firm’s also know who is driving on company business. It is good practice to periodically obtain driving records for all employees that use vehicles on company business.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080