Why Should A Company With No Vehicles Buy Auto insurance?

Every business has an auto liability exposure. When an employee goes to the office supply store in his personal vehicle for copy paper he is exposing his employer to a lawsuit. The same threat exists when an employee drives to a conference, rents a vehicle, or drives to a customer meeting.

Under common law an employer is responsible for the actions of employees. A lawsuit against an employer can result from an accident where an employee driving a personally owned vehicle causes an accident. The non-owned auto exposure is a huge risk of loss. Think of the lawsuit that could result from an accident where three pedestrians are hit in a cross walk by an employee driving to a customer meeting.

The fix is relatively easy. Non-owned auto liability insurance can be added to almost any small company insurance program for about $250.