An employer is vicariously liable for the acts of employees in the service of the employer. This liability is based upon the legal doctrine, respondeat superior (Latin for “let the master answer”). When an employee causes injury or damage in the course of employment, the employer is deemed culpable for the act because of the master/servant relationship that exists. Now picture your employee running errands, making deliveries or meeting clients in his or her personal auto. Then think of the damage a driver can do with a car. Are you squirming in your seat yet?
We have the solution to finance this exposure without deep dipping into your checkbook. What you need is non-ownership commercial auto liability coverage. If you own a commercial auto, it will be insured on a business auto policy, and you likely will have non-ownership coverage, as well (but you should be certain). Sometimes, a business owner who does not own an auto does not perceive the need to get an auto policy to cover non-owned autos. You don’t need to own an auto to get non-owned coverage. You may not even need a separate business auto policy to obtain this protection; it often can be added by endorsement to your businessowners policy. So, don’t be intimidated by respondeat superior, we have the coverage to contego (Latin “protect”) you.