Auto Insurance Coverage & Liability
By providing automobile insurance coverage and liability, a company is safe both when employees drive company cars or their personal vehicles for work. Did you know when an employee drives a personal vehicle in a work context, a business is at risk in the case of an accident? Such vehicles are known as “non-owned autos.”
In the insurance industry, “non-owned autos” are defined as vehicles that a company does not own. Such vehicles include an employee car that is used in connection with the business. Insurance companies designate a specific relevance for how coverage applies to such vehicles.
The Importance of Automobile Insurance Coverage Today
In most cases, SCS provides liability policies for an employee’s non-owned auto on what is known in the industry as an “excess” basis. Thus, in case of an accident, the employee’s insurance is “primary” (pays first), and the company’s non-owned auto policy is “excess” (pays second if needed).
The threats of non-owned auto exposure include the following:
- Visiting clients or customers
- Taking deposits to the bank
- Picking up lunch for an office event
- Shuttling between a company's places of business
- Running errands for executives
Automobile Insurance Coverage that Protects Your Company
Strategic Contracting Services helps your company by offering a non-owned auto insurance policy while also creating a program for employees that drive their vehicles on company business.
Ten Aspects of a Successful Non-Owned Auto Employee Program
- Institute a system to identify employees that could potentially drive on behalf of the business in their vehicles.
- Require employees to carry personal car insurance. SCS recommends a minimum, $500,000 in liability.
- Obtain proof of employees’ insurance coverage annually.
- Ask employees to sign MVR authorization forms, and then run their Motor Vehicle Records annually. The MVR form addresses issues of privacy.
- If available in your state, sign up for an employer notification program.
- Establish driver eligibility guidelines, detailing the number and type of violations or accidents that disqualify employees from driving eligibility.
- Implement and enforce a vehicle use program, which includes a signed consent form that outlines acceptable practice for driving on company business.
- Maintain hired and non-owned auto liability and umbrella liability policies.
- Train employees on safe driving, including a discussion about distracted driving, defensive driving, following proper distance, and driving in bad weather.
SCS Offers Automobile Insurance Coverage and Trainings
As an Employer of Record, Strategic Contracting Services offers both automobile insurance coverage and vehicle safety training for your employees. There is no reason for an employee car accident to cause long-term difficulties for your business.
To learn more about improving your company’s overall health by obtaining automobile insurance coverage, please contact the SCS team today.
If you're interested in our services use our Get Started Today page to arrange a consultation.