Are personal vehicles used for business covered?

Non-owned auto coverage can extend to personal vehicles used for business, but specific endorsements may be needed.

When you're using a personal vehicle for business purposes, it's essential to understand how insurance coverage works. Typically, personal auto insurance policies are designed to cover individual use and may not automatically include business activities. However, there is something called non-owned auto coverage that can help. This type of coverage is part of a business insurance policy that protects a business if an employee uses their own car for work. It can step in for liability and, sometimes, physical damage if included in the policy. To ensure proper coverage, businesses often need to add endorsements to their existing commercial policy. This endorsement specifically expands the coverage to include personal vehicles when they are being used for work-related tasks, such as deliveries or visiting clients.

Imagine Sarah, who works as a salesperson for a retail company. She uses her personal car to travel to client meetings and occasionally to make small deliveries. Sarah's personal car insurance might not cover her during these business trips. However, her employer has a non-owned auto insurance endorsement on their commercial policy, which means Sarah is covered if she gets into an accident while on a work-related trip. This coverage helps protect both Sarah and her employer from any potential liability.

If you or your employees use personal vehicles for business purposes, make sure to check what your current insurance covers. Speak with your insurance provider about adding a non-owned auto insurance endorsement to your business policy. This will ensure that business-related travels are adequately covered, and it helps prevent unexpected expenses in the case of an accident. Always make sure your employees are aware of what is and isn’t covered when using their own vehicles for work, as this will ensure everyone is on the same page and adequately protected.