If your company relies on rental cars or the use of employee and partner vehicles, you still need insurance coverage even if you’re not planning on buying a vehicle the company owns. You don’t need the same coverage you would if you owned a car, but when you rent a vehicle or you use one belonging to someone associated with the company, you incur liability for any damage or injury that happens while your employees are driving for the company business. If you rely on contracted staff or temporary workers and they drive on your behalf, then it’s also important to make sure you have a policy designed to be a hired non owned auto policy for temp staff, because some insurers do exclude temporary workers from the coverage when they draft a basic hired or non-owned policy.
Understanding Your Liability When Renting or Borrowing
Just as your employees’ actions on behalf of your business are your responsibility when their work or negligence causes damage or injures someone, you are also liable for what they do behind the wheel if you are the reason they are there. Their own insurance and individual liability cover them on the way to and from work, but if they go out driving on business, that’s when this coverage kicks in, whether it’s a rental or a borrowed vehicle you send them out with.