Does General Liability Cover Employees Driving Their Car?

Imagine that your employee, Sarah, who works in your medical office, needs to drop off some documents at a nearby clinic. She decides to use her personal vehicle for the delivery. On the way, she’s involved in a minor accident. The big question arises – does your general liability insurance cover her while she’s driving her own car, and what about any bodily injuries or property damage?

General Liability Insurance: What's Covered?

General liability insurance is a foundational piece of any business insurance plan. It typically covers your business for claims involving bodily injuries, property damage, and related medical expenses that occur on your premises or as a result of your operations. However, when it comes to incidents that happen on the road, especially when your employees are using their personal vehicles, this coverage may fall short.

The Role of General Liability in Employee-Driven Incidents

If your employee is driving their personal vehicle for business purposes, such as running a company errand for your medical office, general liability coverage will not protect your business against claims arising from an auto accident. This is because general liability insurance focuses on risks directly related to your business operations, not auto-related incidents. Liability insurance, while broad, does not typically extend to cover accidents involving vehicles.

For example, if Sarah causes a collision while driving her personal vehicle for work, your general liability policy will not cover the property damage or any bodily injuries sustained by others in the accident. Additionally, any medical bills arising from the incident would not be covered under this policy.

What Does Cover Employee-Driven Auto Incidents?

To cover incidents where your employees use their personal vehicles for business-related tasks, you need hired and non-owned auto insurance (HNOA). Hired and non-owned auto insurance steps in when an employee’s personal vehicle is being used for business purposes. This type of coverage helps pay for property damage, bodily injuries, and even legal expenses if the employee is at fault during the accident.

In Sarah’s case, if your medical office had hired and non-owned auto insurance, it would help cover the costs associated with the accident as long as Sarah was using her vehicle for a work-related errand. Her personal auto insurance policy would act as the primary coverage, but hired and non-owned auto insurance would come into play to protect your business if Sarah’s personal policy limits were exceeded or if the damages involve your business’s liability.

The Importance of Hired and Non-Owned Auto Insurance for Medical Offices

In medical offices, employees may occasionally use their personal vehicles to carry out business-related tasks. These tasks could include picking up supplies, attending off-site meetings, or making deliveries. Without the right coverage in place, your business could be exposed to significant risks if an accident occurs. Even if your employees have their own personal auto insurance, their policies may not provide enough coverage for accidents that occur while they are performing business-related tasks.

Most personal auto insurance policies exclude coverage for accidents that happen during work-related activities. This leaves your business vulnerable to claims and lawsuits if one of your employees is involved in an accident while driving their personal vehicle for company-related work. Non-owned auto insurance provides the protection you need in these situations by extending liability coverage to your business when your employees use their personal vehicles for work purposes.

Why Is Commercial Auto Insurance Not Enough?

If your business provides employees with a company vehicle, you might assume that your commercial auto insurance policy provides adequate protection for all driving incidents related to work. However, commercial auto insurance only covers accidents involving company-owned vehicles. If your employees drive their own vehicles for business purposes, you still need non-owned auto coverage to protect your business in case of an accident.

Additionally, if your employees are renting vehicles for work, hired auto insurance is necessary to provide coverage for vehicles you don’t own but rent for commercial purposes. Together, hired and non-owned auto insurance offers comprehensive coverage that bridges the gap left by your commercial auto policy and your employees' personal auto insurance policies.

Protecting Your Business with the Right Insurance Policies

To protect your business and employees, it’s important to consult with your insurance agent about adding hired and non-owned auto coverage to your existing business insurance policy. This type of coverage is typically affordable and can provide much-needed protection in the event of an accident involving an employee’s personal vehicle used for business tasks.

You should also establish clear policies regarding the use of personal vehicles for work purposes. Your insurance provider can help ensure your policy aligns with your business needs and offers the right level of protection. This proactive approach helps you mitigate potential risks and prevents your business from facing costly lawsuits, medical expenses, and property damage claims that could result from employee-driven auto accidents.

How Liability Protection Works with Hired and Non-Owned Auto Insurance

If Sarah's personal vehicle had been involved in an accident while on a company errand, and she only had basic personal auto insurance, it could leave your business exposed. If the damages exceeded Sarah’s policy limits, your business could be held responsible for the excess amount. This is where hired and non-owned auto insurance comes into play. This coverage helps your business by providing liability protection for bodily injury, property damage, and other related claims resulting from accidents caused by employees while driving their own cars for business purposes.

If Sarah's accident led to significant medical bills or legal disputes, the protection provided by hired and non-owned auto insurance could make all the difference in shielding your business from excessive out-of-pocket expenses and legal exposure.

Manage the Risks

When your employees use their personal vehicles for work-related purposes, your business could face serious financial risks if you don’t have the right insurance coverage in place. While your general liability policy provides broad protection for many aspects of your business, it does not cover auto-related incidents involving your employees’ personal cars. To effectively manage these risks, adding hired and non-owned auto insurance is a smart move.

Ensuring that your business has the right coverage in place can help you avoid potentially devastating costs related to auto accidents, medical expenses, legal expenses, and property damage. By working closely with your insurance provider, you can tailor a plan that meets your specific business needs and provides peace of mind for both you and your employees.

For more information on how to protect your business with the right coverage, Kastner Insurance is here to help. Reach out today for expert advice on how to safeguard your medical office from the unexpected.

About Kastner Insurance Group

Founded in 2017, Kastner Insurance Group is a full-service, independent insurance broker based in Lafayette, LA. Our insurance agents specialize in offering a variety of insurance products tailored to individual and commercial needs, making sure clients receive personalized and comprehensive coverage options from a variety of insurance companies/insurance carriers.

With over 43 years of combined experience, the team at Kastner Insurance Group is dedicated to providing expert advice and exceptional service. They proudly serve professional offices and businesses across Lafayette city/parish, Youngsville, Broussard, Baton Rouge, New Orleans, Alexandria, Acadiana, and statewide in Louisiana.

Call us today or visit our website for a customized quote.  

Lafayette Insurance, affordable insurance, truck insurance, auto insurance lafayette la, commercial insurance, commercial insurance louisiana, marine insurance, hull insurance