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Does the business policy cover an employee’s personal car on a work errand?
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When an employee uses their own car for an occasional work errand, how should the business assess liability coverage if the employee already has a personal auto policy? I’m especially interested in how that differs from an employee driving a company-owned vehicle.
I understand the employee’s policy and the business’s policy may address different exposures, and that coverage depends on the actual wording. For the business policy, would you look for hired and non-owned auto liability coverage or a specific endorsement? And does that typically address liability to others only, leaving damage to the employee’s car to their own policy, subject to its terms? What wording or exclusions are most important to verify before allowing this kind of use?
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For an employee’s personal car, I’d get the insurer to confirm in writing whether the employee’s personal auto policy is primary and the business’s hired-and-non-owned auto coverage is excess. That priority can depend on the actual policy wording, so I wouldn’t assume it from the coverage label alone.
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