Brookhurst Insurance provides commercial auto insurance to all types of businesses across California and the United States. We are located in Encino, California and are available to serve all of your business’s general liability needs.
Non-owned auto liability is designed to protect you and your business in the unfortunate event that your drivers get involved in an accident while using a vehicle that is not owned by your business. This type of insurance is common in delivery businesses where employees are asked to use their personal vehicles to make deliveries on behalf of the company.
Under these circumstances, the law states that the business owner has vicarious liability. If your business depends on non-owned vehicles to make deliveries or run other business errands, Brookhurst Insurance agents can help you find the right auto insurance to protect you and your business from expensive claims.
Benefits of Non-owned Auto Liability Insurance
If your employees are using their personal vehicles to transport items and run business errands in the scope of employment, then you - as the employer - is potentially liable if the employees are found to be negligent in the operation of their vehicles for your business.
Employers may face similar liabilities from auto collisions involving vehicles owned by subcontractors while making a delivery on behalf of the company. In such situations, the subcontractor may argue that they are employees of your company, which would lead to vicarious liability for you and your business.
Generally, even if your employees or subcontractors carry their own liability insurance, their coverage may be insufficient and unlikely to cover the total amount of damages. In such situations, the employer is usually shotgunned into a lawsuit. To protect yourself, you should obtain Excess Non-Owned Auto Liability. This coverage applies the excess of any other pertinent collectible insurance (such as the employee’s personal auto policy) on your behalf.
However, keep in mind that non-owned auto liability insurance only covers you (or the business entity) stated in the policy. The injured driver would rely on either their personal auto insurance or workers’ comp to pay for medical bills and other damages resulting from an accident.
Get Non-owned Auto Liability Insurance Today
If you use your employee’s personal vehicles for business, it is important that you get the right insurance cover to avoid costly claims. Please contact Brookhurst insurance agents online or call 818.465.7860 to discuss your specific needs for non-owned auto liability coverage and insurance.