Suppose you’re driving your “company-furnished” vehicle on a personal errand to the grocery store and are involved in a very serious accident. Will you have the proper insurance coverage? Bonnie Pesch, a veteran personal lines underwriter with West Bend discusses this question below.
It’s possible you may not. Maybe your employer’s business auto policy doesn’t cover you when you’re using a company vehicle on personal business. Even if the policy provides you with coverage, the limits of liability may be too low. If you’re sued, you could be personally responsible for damages.
How do you protect yourself if you drive a company-furnished vehicle? It’s easy to do if you already own a different vehicle and insure it under a personal auto policy. Simply add Extended Non-Owned Auto coverage to it. This endorsement – on your own personal auto policy – provides you with personal auto insurance while you’re driving any non-owned auto furnished or available for your regular use.
So what should you do if you don’t own another vehicle with insurance coverage? Purchase a Named Non-Owned Auto policy. This will also provide you with the personal auto coverage you’ll need.
If that’s not enough reason to make sure you have either Extended Non-Owned Auto coverage or Named Non-Owner Auto coverage, here’s another: Let’s say you go on vacation and want to rent a vehicle. Your employer’s business auto policy isn’t going to extend coverage to you for that rental. On the other hand, Extended Non-Owned Auto or Named Non-Owned Auto WILL provide this liability coverage.
Be sure to talk to your insurance agent about these valuable coverages. Depending on your occupation, there may be some stipulations.