Firms and insurance agents forget to add Hired/Non-owned audit endorsement when writing a Business Owners Policy (BOP) or Commercial Auto Policy. This can be a costly omission. Even if the only thing a firm employee does is take money to the bank using the employee’s car, you need the Hired/Non-owned auto endorsement. Any personal vehicle use for any business purpose creates a liability for the firm. Include this endorsement with your business owners policy or your commercial auto policy.
The Hired and Non-owned Auto endorsement protects the firm’s liability from a firm employee involved auto accident on company business using their personal or rented vehicle. This exposure exists even if your firm owns no vehicles. Any time an employee uses a vehicle for company purposes the firm is liable.
The general rule is that if the firm has a commercial auto policy attach this endorsement to that policy. If the firm does not have a commercial auto policy attach the endorsement to the BOP.
Firms should know the driving records of employees driving on company business. It is good practice to periodically obtain driving records for all employees that drive on company business.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080