Employees often rely on their personal vehicles to keep business moving—whether it’s heading to a client meeting, picking up supplies, or attending an event. It may seem like their personal auto insurance has you covered, but that assumption can leave your business exposed.
At Bender, we help businesses identify and close coverage gaps before they turn into costly claims.
Where Coverage Gaps Can Happen
Most businesses carry commercial auto insurance, which is designed to protect vehicles owned by the company. However, it does not extend to vehicles your business doesn’t own—like an employee’s personal car.
That gap can create serious liability exposure.
Even if an employee has their own auto policy, it may not fully cover business-related use. Some policies exclude it entirely, and others may have limits that fall short—especially in more severe accidents involving multiple vehicles or injuries. When those limits are exhausted, your business could be next in line.
Why Your Business Could Be Liable
If an employee causes an accident while driving for work purposes, your company may be held responsible.
Imagine an employee running an errand for the office and causing a multi-vehicle accident. If they only carry minimum property damage limits, those funds could be depleted almost immediately. Without the right coverage in place, your business may be left covering the remaining costs—out of pocket.
What Is Hired & Nonowned Auto Insurance?
Hired and nonowned auto insurance helps protect your business when vehicles you don’t own are used for work purposes. This coverage is typically added to your existing commercial auto policy.
It can help cover:
- Bodily injury and property damage
- Legal defense costs
- Medical expenses
- Vehicle repair costs
This added layer of protection ensures your business isn’t left exposed when employees hit the road on your behalf.
Who Should Consider This Coverage?
Your business may benefit from hired and nonowned auto coverage if:
- Employees use personal vehicles for work errands or client visits
- You provide a car allowance or mileage reimbursement
- Employees travel between job sites or meetings
- You or your team rent vehicles for business trips
- You occasionally borrow vehicles for business use
Even infrequent use can create risk—making this coverage an important consideration for many businesses.
Supporting Your Employees
If employees drive their own vehicles for work, they should review their personal auto policies with their insurance advisor. It’s important they understand:
- Whether business use is covered
- If their liability limits are adequate
- Any exclusions that could impact coverage
At the same time, employers should clearly communicate what the company’s insurance does—and does not—cover.
Protect Your Business with Confidence
Hired and nonowned auto insurance is a simple addition that can make a significant difference when it comes to protecting your business from unexpected liability.
If you’re unsure whether your current policy addresses these exposures, Bender is here to help. Reach out to our team for a coverage review and personalized guidance tailored to your operations.
This article is intended for informational purposes only and should not be interpreted as insurance, legal, or risk management advice.
