The Coverage Gap: When Furnished a Company Vehicle
Posted by Hubbard Insurance Agency on
A common situation many of us find ourselves in today is the personal use of a company vehicle. When you are furnished a company vehicle, you are generally provided coverage to use that vehicle through your employer’s auto insurance policy. But your employer’s policy usually does not cover you if you then borrow or rent a vehicle to be used personally.
If you also own a personal automobile, and have that auto covered by a personal automobile policy, you probably already have this coverage. But, if you do not own a personal vehicle, you definitely have a gap in coverage. Some employers will endorse their business auto policy to provide you with this coverage, however, it may be at your expense. The coverage is badly needed if you either rent autos, or borrow automobiles.
A second very important exposure you face is injury to a co-worker. The majority of business auto policies exclude coverage for you if you injure a co-worker riding with you in your company vehicle. In most cases, the worker would be covered by workers’ compensation, but some states allow an injured employee to sue the negligent party in addition to filing a claim.
In some cases, you can add extended non-owned auto coverage to your personal auto policy. Also available, in some instances, is coverage that can be picked up through the personal umbrella policy. You may be able to fill the gap for liability from injuries and property damage you cause while operating a non-owned vehicle with a personal umbrella policy.
An auto insurance agent from Hubbard Insurance Agency is available to discuss your auto insurance needs. We care about our clients and take the time to make sure you have the best protection at the most affordable price available.