When Employees Use Personal Vehicles for Work

August 1, 2022

Kim Haesemeier discusses why your business should make sure it's clear on coverage for personal vehicles used for business.

When Employees Use Personal Vehicles for Work

Are you vulnerable to losses from car accidents that happen when employees use their personal vehicles for business? The answer is both yes and no.

Employees must carry their own coverage

The employee’s auto insurance will be the primary coverage if they are using their personal vehicle for company business. If your employee is at fault, their personal insurance coverage will be applied to their own losses, as well as the other party’s losses.

It’s important to educate employees on this and make sure they understand it before they have an accident.

You may be on the hook when employee coverage is not enough

Many people carry only the state-required level of liability coverage. When the claim reaches that level, the other party may seek compensation from your company. That’s where your non-owned auto liability kicks in. Make sure you have it!

Volunteers are not covered, except for nonprofit organizations

It’s important to note that volunteers who use their personal vehicles are typically not covered under standard non-owned auto liability coverage for most companies. However, if you are a nonprofit organization, it’s a different story and volunteers are included in your standard coverage.

If your company is not considered a nonprofit and you’d like to include volunteers on your policy, you can request a change.

Reduce your risk by checking records, offering training

Any time you hire an employee who will have to drive as part of the job, you should check their motor vehicle record. This can usually be done as part of a typical background check. And, while you may have less at stake than you do with company-owned vehicles, you still might want to put some controls and training in place to encourage safer driving.

Let us know if you need help with coverage decisions or training resources, such as our defensive driving course.

About The Author

Kim Haesemeier, CISR, CWCA

Kim Haesemeier, CISR, CWCA
Email As Senior Account Executive, Commercial, Kim has more than 20 years of experience in property and casualty insurance. Kim provides advice and analysis of commercial coverage, exposure review, carrier relationships and market conditions to clients. She specializes in customizing insurance programs to fit her clients’ needs.

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