Do you provide company vehicles to your employees? If so, do these employees have their own personal automobile policies? If not, a potential gap in coverage may exist. To adequately cover your risk, a drive-other-car endorsement is specifically intended to bridge this gap.
Drive-Other-Car Coverage Basics
Employees who have company-owned vehicles often do not have an additional automobile and therefore do not carry personal automobile policies.
If the employee doesn’t carry a personal policy and drives a vehicle borrowed from another party – other than the company-issued vehicle – drive-other-car coverage affords them protection should an accident occur.
Drive-other-car coverage is endorsed onto your business automobile policy and provides coverage only for scheduled individuals.
How does this differ from hired/non-owned coverage?
Are you covered?
To show how drive-other-car coverage applies, consider the following situations:
In all of these circumstances, the business automobile policy provides no coverage since the “covered auto,” or company-owned vehicle, was not involved in the accident. A drive-other-car endorsement closes the exposure loop in these instances.
What steps should I take to minimize exposure?
Proper Planning Is No Accident
An agent who understands ’s business can help you understand drive-other-car coverage and endorse your business auto policy to your individual needs.
Call Dan Lawrie Insurance Brokers today to ensure that your automobile coverage adequately meets your needs.