Non-owned Automobile Insurance
What Does Non-owned Automobile Insurance Mean?
Non-owned automobile insurance is a type of automobile coverage for vehicles the policyholder does not own, hire, lease, rent, or borrow. Companies often purchase this policy for employees who use their personal cars for company business. It protects the company from liability for losses incurred while an employee drives a non-owned vehicle for work-related purposes. It usually sits alongside a company’s commercial auto insurance policy, which covers vehicles the business itself owns or leases.
Insuranceopedia Explains Non-owned Automobile Insurance
Many businesses rely on employees using their personal vehicles for company tasks. For example, pizza shops and other delivery-based businesses often have employees deliver products using their own cars. Operations like these typically pair non-owned auto coverage with courier business insurance to handle the specific risks of on-the-road work. If an employee causes an accident while performing company duties, the company may face a lawsuit. Without non-owned automobile insurance, such incidents could result in significant financial losses for the company. However, this type of insurance provides protection against such liabilities, safeguarding the company from potential claims. For broader third-party injury and property damage claims not tied to a vehicle, businesses also carry general liability insurance.
