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PRESCRIPTION OF THE MONTH |
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Charles Malmquist, CPCU, ARM, AAI 770.913.1201
Paul Tuggle, CPCU 770.913.1208 |
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John Lowden 770.913.1209 Ron
Cuen |
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In the course of managing your facility or practice, do you ever
have an occasion to do any of the following? • Send an employee to the
store for supplies. • Send an employee to the
bank. • Send an employee to pick up
lunch. • Rent a car while on a
business trip. •
Rent a car for temporary use in the course of your business. If so, then you have a Non-Owned & Hired Auto Liability
exposure. This coverage is typically added as an endorsement on a General
Liability policy when no corporate auto policy exists. The endorsement covers
bodily injury and property damage caused by a vehicle you hire or do not own
operated by you or one of your employees while on company business.
Hired Auto coverage replaces or
supplements the liability coverage offered by auto rental companies.
However, it does not cover physical damage to the vehicle that is rented.
You should still obtain physical damage coverage from the rental company.
As is true with Hired Auto, it is important to remember that the
liability coverage provided is designed to protect the company, not the employee
driving the rented vehicle. The employee is still personally liable for injuries
or property damage to third parties in an accident, just as if he or she were
driving a personal vehicle. This coverage is for the company only and is
"excess" over the personal auto liability coverage carried
by the driver of the vehicle. |
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Non-Owned and Hired Auto
Liability- What is it and why do you need it? |
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900 Ashwood Parkway | Suite 100 | Atlanta, GA 30338 | Main 770.399.6760 | Fax 770.399.6647 | www.potterholden.com |
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November 2007 |
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The information contained above is intended to be illustrative and
discusses general insurance issues. It is not designed to give any
specific legal advice pertaining to any specific circumstance. It is not
intended as a policy of insurance, binder, or state of coverage or as an
amendment, modification or waiver of the terms and conditions of any policy of
insurance. In every instance, a policy is the only accepted statement of
coverage, and it is important to read and understand your policy. Contact your
agent if you have questions regarding your coverage. |
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