The Coverage Gap Most Business Owners Don’t See Coming
Let’s say an employee runs to the office supply store in their own car, or a staff member drives their personal vehicle to drop off paperwork at a client’s office. It seems harmless enough, until an accident happens. Patriot Independent Insurance Partners regularly talks with Georgia businesses who assumed their commercial auto policy automatically extended to these situations, only to discover it didn’t.
What “Hired” and “Non-Owned” Actually Mean
These two terms cover different scenarios, but both fill in gaps that a standard commercial auto policy leaves open.
- Non-owned auto coverage applies when employees use their personal vehicles for business tasks, like errands, deliveries, or client visits
- Hired auto coverage applies when a business rents or borrows a vehicle for work purposes, such as a rental truck for a special project
Without either of these in place, a business can be left exposed if an accident happens during a work-related errand, even if the vehicle itself isn’t company-owned.
Why This Matters More Than Businesses Expect
An employee’s personal auto insurance often excludes coverage for accidents that happen while conducting business activities. That leaves a real gap between what the employee’s policy covers and what the business assumes is covered. This ties into the same coverage-awareness theme we discussed in our post about commercial auto coverage gaps for Georgia contractors, since overlooked scenarios like these tend to surface at the worst possible time.
A Quick Policy Review Can Prevent a Big Problem
If your team runs errands, makes deliveries, or occasionally rents a vehicle for work, it’s worth confirming your commercial auto policy actually accounts for it. Patriot Independent Insurance Partners helps businesses across Georgia close these gaps before they become a real liability. Visit Patriot Independent Insurance Partners to review your coverage today.
