1. Non-Owned Auto Liability
Non-Owned Auto Liability coverage will pay for damages to a third party on behalf of your company if an employee
causes an accident or an injury to someone while driving their personal vehicle for company related business. This would
include company errands, company deliveries and client visits. This coverage protects the company only and is excess over
the personal auto liability insurance carried by the employee. State laws will still hold the actual driver personally liable for
injuries or property damage to third parties caused by an accident.
For example, if your employee uses their car to go to the post office and causes an auto accident while driving there, the
person hit may look to your company to pay damages in excess over what is collectible from the employee’s personal auto
insurance. Without this coverage, your company would have no liability insurance coverage for this exposure.
Non-Owned liability does not provide physical damage coverage for the employee’s vehicle. There are no endorsements or
coverages that can be purchased that would indemnify the employee and make the employer’s insurance primary instead of
excess.
If you have additional questions contact Dan Bukaty at 913.345.0440 or email dbukaty@bukaty.com.
Bukaty Companies
11221 Roe Ave., Ste. 200
Leawood, KS 66211
Phone: 913.345.0440
Toll-Free: 888.657.0440
Fax: 913.345.2608
www.bukaty.com
September 24, 2008
Keeping Your Business Informed and Prepared
Risk Management Bulletin
March 7, 2012