Is my employee covered by my Mastic, NY commercial auto insurance policy when he uses his own vehicle on the job?

When your employees use their own vehicles for business purposes in Mastic, New York, typically they are covered by their personal auto insurance policy. This is a fairly common issue, but tends to generate confusion with many business owners.

In most cases, employees using their own vehicles for business tasks are covered by their personal auto insurance policy, not your commercial insurance policy. There is one significant exception, however.

Should your employee be transporting goods, office items or people for a “fee,” the employee’s policy seldom cover losses. Legally called "livery," similar to taxis, employees transporting items or people–and receiving a fee–invalidate their personal auto coverage.

If your business involves delivering things, such as packages, flowers or pizza, employees using their own vehicles may not be covered by their personal auto insurance. Talk to your independent agent, as your staff may also not be covered by your commercial policy, as written, since their vehicles are not owned by your company.

Fortunately, employees using their autos for routine business tasks should be protected up to the limits of their personal car insurance policy. General business usage, such as running to get office supplies, occasional customer visits or attending seminars, should keep your staff covered by their insurance, not yours.

Simple errands, like picking up lunch for the office, also should not pose employee coverage problems. However, rare or occasional use is different from employees driving their personal vehicles regularly, such as sales persons using their cars daily to call on customers.

Ask your independent agent if your coverage includes "non-owned" autos, which protects your company if an employee, has an at-fault accident while using his or her own vehicle. Whether you have company-owned vehicles or not, you should have this coverage.

Contact us, your independent agent in Mastic, New York, to be sure you’re properly protected for liability losses caused by employees when driving their own vehicles for business purposes. We’ll explain what protection you have, along with suggesting additional coverage if you need it. Since we work for you, not one company, we’ll give you the best advice for your business to keep it protected at all times.