If you have a company vehicle, chances are that you have specific auto insurance for it. However, if employees use their personal vehicles for business use, the company could be held liable. Non-owned auto (NOA) protects the business in case an employee uses a vehicle not owned by the company for business purposes. The NOA coverage is added onto a Commercial General Liability policy
Here are a few common examples of employees using their personal vehicle for businesses purposes. If examples like this could happen at your company, consider getting NOA coverage.
- An employee driving his/her car to pick up lunch for the team
- An employee picking up a client from the airport
- A salesperson using his/her car to make sales visits
If any employee has a car accident in any of the above examples, the company could be held liable. It is possible that the employee’s own personal auto insurance does not respond because the car was being used for business purposes. In such cases, the entire responsibility would land on the company.
- Who is covered: Employees of the company
- When are they covered: When using a vehicle not owned by the company, for company purposes
- When are they NOT covered: If driving a vehicle owned by the company, or if driving for non-business purposes (e.g., a shopping trip after a client meeting)
- Who should get NOA coverage: Any company that may have its employees drive non-owned vehicles for business purposes
Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.