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R&R Insurance Blog

Does Your Company Have an Auto Policy?

Posted by Kristen Beach

Tue, Apr 04, 2017 @ 02:02 PM

iStock_000048281056_Large.jpgYou have a small business, your company doesn’t own any automobiles, and no one drives for their job… you don’t need any auto policy, right? Wrong! 

Do you or your employees occasionally visit a customer?  Do you drop items off at the bank, even on the way home?  What about go out for a company lunch?  Rent a car to drive to a seminar or trade show? Then you might want to consider Hired/Non-owned Automobile coverage. 

Hired/Non-owned Auto coverage is auto liability coverage for your business when your employees are driving on work-related matters.  In the event there is an accident, defending your company in case of a lawsuit. This coverage comes in to play when there is a vehicle being driven by you or an employee that is Hired (i.e. rental cars) or Non-owned (by the company).  So if an employee is driving his or her own vehicle to attend a trade show, there would be liability coverage to protect the business.  

This reasonably inexpensive coverage can be added to most general liability policies. Contact R&R Insurance for more information.

Topics: Hired/Non-Owned Auto, auto policy, Business Insurance

Leasing a Personal Vehicle Back to a Business - Are You Covered?

Posted by Brian Bean

Thu, Sep 01, 2016 @ 12:44 PM

Bob is the owner of Giovin, Inc. He owns a car that is titled in his name only.  He also uses the car primarily for the business of Giovin, Inc.  Because of that, Bob had his insurance agent add the car to Giovin Inc.’s commercial automobile policy.  Bob even has a lease with Giovin that pays iStock_000010641551_Large.jpgBob for the use of that car.  This seems like a great deal for Bob, and in the real world, this scenario happens fairly often.

However, there is a serious coverage problem with this arrangement.  Bob may not be covered personally if there is an accident.  Here is an example of what might happen:   

Let’s say Bob is driving the car on business for Giovin Inc., when he rear ends another car, injuring the occupants.  The occupants file a lawsuit against both Bob, personally, and Giovin, Inc.

This is when Bob gets a nasty surprise.  A standard commercial automobile policy does not cover and defend Bob in this situation.  He will have to pay for his own defense in this lawsuit.  If there is a judgment or settlement, he will likely have to pay that personally as well.

This outcome could have been avoided if Bob had told Giovin’s insurance agent that he was the owner of the vehicle, not Giovin, Inc.    

This situation can be handled to make sure that Bob is covered under the policy.  There are different ways of doing that, and the first step is making your agent aware of who actually owns what vehicle.  To be sure, the insurance carrier’s underwriters will have some questions that will need to be answered.  

A good rule of thumb when it comes to commercial automobile policies:  If a vehicle is titled to someone other than the business named in the policy, you need to check with your agent to make sure that the actual owner is covered in case of an accident.      

Contact a Knowledge Broker at R&R Insurance for additional information.

Topics: Auto Insurance, Auto Accidents, auto policy