If your employee gets hurt on the job, they are covered under Workers’ Compensation Insurance.
But what if they cause property damage or bodily injury to a 3rd party in a car accident? Your employee first files a claim with their personal auto insurance to cover this because auto insurance always follows the car. However, you as the employer are also legally liable since the employee was running an errand for your business. If their personal auto limits are used up, additional coverage can be found in your Business Owners Insurance policy but only if you have "Non-Owned Auto Liability". Check your policy now to make sure you have this valuable and necessary coverage. Not sure? Give us a call at 888-512-8878 and we’ll tell you if you’re properly covered.
Please note that any damage to your employee's car would be covered by the employee's personal auto insurance if they cause the accident or covered by the other party's auto insurance if the other party is at fault.
By Gustavo Ruano, CIC, CLCS, CISR