Why is Non-Owned Auto coverage so important?

Why is Non-Owned Auto coverage so important? First, let’s define it. Non-Owned and Hired Auto liability coverage is meant to protect your organization from liability that arises due to the actions of your employees who are driving their own vehicles within the scope of their job duties. The employees’ personal auto insurance protects the employee but it does NOT protect your organization.

Non-Owned liability insurance protects your organization. For example, one of your employees is driving to a client’s home to provide care. On the way your employee is involved in an accident where the third party is injured and your employee is at fault. If your employee does not have high enough liability limits to cover the damages, the liability shifts to your organization since the employee was working at the time of the accident. Without proper insurance planning this could cost your organization a significant amount of money; money that should be going to patient care.

Hospice and Home Health Care organizations have a significant exposure to liability arising from their employees driving their own vehicles. It is vital that Non-Owned Auto Liability Insurance is carefully considered.