In today’s litigious society, accident claimants will often seek recovery from as many sources as
can be found. It’s not difficult to imagine scenarios wherein any company with employees (and
possibly not even operating from a physical location) can still be sued based on non-owned auto
liability in the aftermath of a motor vehicle accident.
The classic example exists of an employee using their personal vehicle for a work errand. At the
accident site, the employee mentions, “I was just on an errand for XYZ Company,” and XYZ
Company ends up being named in an ensuing lawsuit, particularly if the employee doesn’t have
sufficient liability limits on his personal auto policy.
Or what if the owner of a company—still with “no owned autos”—is involved in a serious accident
and the claimant realizes the owner has most of his personal wealth in his company? The
claimant will likely include the company in his lawsuit, and without specific coverage for nonowned
auto liability, the insurance program would not protect the insured in these instances.
Hired auto exposures arise differently, but again, it’s not difficult to anticipate situations where
an employee or officer of a company may suddenly need to travel and rent an auto, and if it’s in
the course of business, to assume it’s covered by the company’s insurance. Hired auto physical
damage exposure occurs here as well, but again, without specific coverage in place prior to an
accident, a company may be looking at an uninsured claim.
Almost every operating business entity has liability exposures from hired and non-owned auto liability, and frequently for hired physical damage as well, whether or not the business owns any autos.
A good commercial agent, like JASON SHROOT knows that not only do their clients need this coverage, the lack of the coverage can lead to a real nighmare to any business owner who chooses to ignore this risk exposure.
Please Contact Jason Shroot directly by calling 714-988-3325 and learn more about your commercial insurance policy's risk management pratices. Also reach Diversified Insurance Quotes by emailing Jason at jason@diversifiedinsurancequotes.com or visiting www.diversifiedinsurancequotes.com
