Scenario: You, a business owner, send your Receptionist on an errand to the store to buy supplies for the office. On her way she is in a car accident. Unfortunately, it is her fault. While speaking to the responding officer, she explains that she is running an errand for her employer. Other than the wellbeing of your employee, you think… do I have anything to be concerned about? She was driving and driving her own vehicle. Why would I be responsible or liable for any damages?
Consider this: If an employee causes an accident while driving their own vehicle for the purposes of the company, their personal auto insurance will respond first for both liability and property damage. However, any injured person can claim that the driver would not have been in that place, at that time to cause the accident had it not been that he or she was driving at the request of the business. They could allege that the business had some level of responsibility.
Two commercial policies are at risk for a claim to be filed against them.
1. The driver could file a Workers Compensation claim for any personal injuries or disability sustained
2. Any other injured party could file a liability claim for any injuries that exceed the limits of liability under the employee’s and at-fault driver’s personal auto policy
Non-owned and Hired Auto Liability coverage is typically an optional coverage, therefore make sure you are selecting it for your business.
Desert Mountain Insurance specializes in insurance for businesses in professional services and the healthcare industry. To determine what insurance products are required or recommended, please contact us.
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