Non-owned automobile insurance is automobile insurance for cars the policyholder does not actually own, hire, lease, rent, or borrow. Typically, companies that have employees who do company business with their own cars often purchase this type of policy. It protects the company from the liability of losses sustained by an employee driving a non-owned automobile on company business.
Many different types of companies have employees use their own cars to conduct company business. For example, pizza shops and some other delivery based businesses commonly have employees use their own cars to deliver products. If an employee causes an accident while doing business for the company, then a lawsuit against the company can ensue. Without non-owned automobile insurance, then the company could sustain significant losses. However, non-owned automobile insurance policy provides protection for this type of loss.
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