non-owned automobile insurance

Employees who use their own vehicles for work are responsible for their own insurance. Limits should be acceptable to their employer. If the employee's own insurance is not sufficient, the employer could be found vicarious liability for that employee's actions. It is common for employees to run errands, make sales calls and deliveries. In the event, the employee's insurance is not adequate, the employer's non-owned auto liability insurance could be called upon. 

One other interesting need for non-owned automobile insurance is it is now the primary third party liability insurance for short term business rentals in Ontario and Alberta. When you travel to either province and rent a vehicle for less than 30 days "for business", the employer's non-owned automobile liability insurance will be called upon as primary insurance (not the rental company). Rental companies in those provinces have successfully convinced their provincial government's to change legislation making the rental company only liable up to a maximum of $1,000,000 and only IF there is no other insurance available. When an employee rents for personal use or uses the business rental personally on a frolick of their own, the employees own personal or their spouses personal insurance will be called upon. If there is no other insurance then at that point the rental company's insurance will respond for third party liability (but they are likley only liable up to a maximum of $1,000,000). Physical damage insurance is in addition to this. The renter can either purchase it from the rental company, it is covered through their credit card, or it could be covered by the Auto policy's SEF27 (a/b for Ontario), or SEF94 on the NOA policy for business.

#nonownedauto