Even if your business operates mostly online or from one location, there’s a good chance you or your employees will need to drive for work at some point. If your employees drive to pick up an office lunch or other supplies, there could be an accident, and the company could be sued. You might rent a car while on a business trip, or rent a car for a client you’re meeting with. Who all is responsible for accidents? Hired non-owned auto insurance can cover employee cars and rental cars, though collision damage will often require a separate policy.
Hired auto coverage can help cover the liability that comes with driving a rental car, though the driver could still be found at fault. Since individuals and companies can be sued separately for the same accident, it’s important to understand the coverage and limits of your insurance. Hired non-owned auto insurance can be tricky to understand, however, seeing as the company is usually covered, but the damages are often not. The insurance should cover fees associated with court costs if the company is sued, but the employee involved in the accident could be on their own. To make sure your company has all the auto coverage they need, consult a reputable insurance agency to explore you