Reduce Your Risk

Posted on Monday January, 2012
Filed in Uncategorized

PERSONAL VEHICLES DRIVEN BY YOUR EMPLOYEES AND/OR VOLUNTEERS

Did you know that if one of your employees or volunteers is involved in an accident while driving their own vehicle on business for your nonprofit, their personal auto insurance is the primary coverage? But what if their coverage isn’t sufficient to cover the incident or their insurance company denies the claim? And what if they have let their personal auto insurance lapse (crazy I know, but it happens)? Your organization can still be held liable!

Protect your nonprofit with Non-Owned/Hired Auto coverage, which will respond if you find
yourself in such a situation. This type of insurance is one of the most valuable and misunderstood coverages. Contact your insurance broker for more information on this is relatively inexpensive, but essential coverage.

Your driving policies should address driving personal vehicles on agency business and should state that you require employees/volunteers to provide you with a copy of their personal lines policy (the page that shows coverage limits, policy number and policy period). Have a procedure in place to track these coverages annually so you don’t have to rely on your employee/volunteers to give you updated documentation when their policy renews.

A tracking spreadsheet (which includes language you can use in an email reminder or memo
to individuals) and other fleet safety program resources are located on our secure website.

And be sure to report any non-owned auto losses immediately! You never know when what you think is a little “fender bender” can turn into a larger claim with soft tissue injuries.

IS YOUR POLICY CURRENT?

It is very important to advise your insurance broker of changes in your operations. For example, have you added new/removed old vehicles? Maybe you recently added a new service offering for your clients? Perhaps you purchased some expensive new equipment? Or you have just moved your offices to a larger space. Don’t wait until your policy renews. Protect yourself and contact your broker immediately anytime you have a change that could affect your policy and related coverage.