If your employees or volunteers use their own vehicles on company business, this coverage is highly recommended. The purpose of this policy is to provide liability coverage in excess of an individual employee’s or volunteer’s auto insurance. The coverage will be engaged if the organization is held liable for the employee’s or volunteer’s actions involving his or her vehicle and the limits of the individual’s personal auto insurance policy have been exhausted.
Enhanced Coverage of Non-Owned/Hired Auto Liability
Summaries of key features only. Actual policy language will differ.
- Covers autos the nonprofit doesn’t own, lease, rent, borrow, or hire used in connection with the nonprofit’s business
- $1,000,000 limits
- Coverage designed to extend to the nonprofit organization and its drivers
- Includes autos owned by the nonprofit’s employees and volunteers
- Excess over the employee’s or volunteer’s personal auto policy
From the CLAIM’S FILES
Employee Driving His/Her Own Car
Insured’s employee driving his own vehicle on agency business was involved in an at-fault, catastrophic collision. Unbeknownst to the nonprofit, the employee’s personal auto coverage had lapsed. The nonprofit’s non-owned coverage dropped down to become primary, as did the Umbrella policy in excess of the Non-Owned Liability Coverage. The full $2,000,000 in available limits were paid in a settlement which involved a structured annuity to take care of the injured claimant over his lifetime. No legal expenses were incurred.
Employee Driving His/Her Own Car
An employee of the nonprofit was using her own vehicle on agency business when she was involved in an at-fault accident. The employee carried personal auto liability coverage, but her insurer denied coverage because the employee was using her vehicle for business purposes. The nonprofits policy then became primary, providing first dollar liability coverage for the at-fault accident.
Hired Auto: Vehicle Used for Company Purposes
An employee of a nonprofit rented a vehicle for three days for business purposes of the foundation. When returning the vehicle to the rental company, damage was noticed on the vehicle. The nonprofit had purchased Hired Auto Physical Damage Coverage, so subject to the HAPD collision deductible, the claim was handled and paid by the nonprofit’s auto policy and the employee did not need to involve her personal auto insurer.