One coverage of utmost importance for any company using cars owned by employees, or rented or leased vehicles is hired and non owned auto liability. You want to protect your company should an employee have an accident while on the job. This includes staffing agencies, who may often have a need for temp employees to drive in their own vehicles, or a rented one, to a job or work-site.
Insureds often do not consider the possible consequences involved in sending an employee on a simple errand to the bank or dry cleaners in their own vehicle. By having non owned auto insurance coverage they eliminate any personal concerns.
We live in a litigious environment, and drivers struck by another person’s car, even where no physical injuries have occurred, can file a claim for non-existent injuries. This could result in a costly lawsuit, with quite a bit spent for defense costs. An employee’s personal insurance has limits of liability equal to the statutory minimum and likely will not be enough to cover such a claim, at which time the insured’s policy will come into play.
The probability of someone in your company having a car accident at sometime is fairly likely, which is why companies purchase insurance in the first place. However companies can also be proactive by instructing employees to practice safety, using many of the risk management tools at their disposal.
Practice safe driving habits
One way to minimize risk is by not being a distracted driver. The majority of accidents today are linked to the use of cell phones, the GPS system, or the act of engaging with passengers while driving. A review of your employees’ personal auto records periodically could alert you to those members of your staff that are more high risk than others. Policies regarding the number and type of allowable violations, including serious violations, for example driving while intoxicated, or reckless driving, are also imperative in helping to manage your non owned auto risks.