The Business Auto Policy typically extends Liability coverage to all Corporate Employees for vehicles Hired or Borrowed by the Name Insured (generally a Corporation). Your Business Auto Policy will function in excess of the Hired or Borrowed vehicle’s insurance. However, Liability coverage is not extended to any employees (frequently Officers/Owners) when they or their spouse borrow or rent a vehicle for their personal use. A coverage gap occurs if they do not have vehicles registered in their personal names or that of their spouse as they then have no Personal Automotive Policy coverage to respond. This same exclusion of coverage would apply to Uninsured/Underinsured Motorist coverage also.
Typically, many people tend to rent vehicles while on vacation, generally in their personal names. If this occurs, the individual is relying on the limits provided by the Rental Company. We strongly suggest that Owners/Executives consider the addition of Drive Other Car Coverage, which will allow the Corporate Automobile limits to follow them if they Rent or Borrow a vehicle in their personal name within the United States, its Territories and Possessions, Puerto Rico and Canada.
The cost varies per Company but generally is in the $250 range for each individual designated on the Commercial Auto Policy.
If this exposure exists, we strongly suggest that you consider this coverage. Please contact your Agent or Customer Service Representative if you desire more information.
