Non-Owned auto coverage

What is the exposure to a home care agency

Caregivers often drive clients on errands, or drive from one client's home to another, in their own vehicle or a client's vehicle. Both are considered on-the-job driving. A home care agency is liable for the actions of their employees while on-the-job, including while driving.

But My caregivers have their own auto insurance

The insurance on the caregiver's vehicle is always primary (meaning first in line to pay claims). The agency's non-owned auto coverage pays in excess of the liability limit on the personal auto policy. Caregivers tend to have state-minimum liability limits which are easily exhausted.

What insurance fixes my employee's car?

The primary auto policy that is in place on the vehicle being driven is always the first in line for liability AND IS THE ONLY POLICY THAT WILL FIX THE EMPLOYEE’S CAR.

If a caregiver is driving a client's car, and is in an accident, what insurance policies provide coverage?

First in line is the policy on the vehicle being driven (the client's insurance policy). That policy is the only policy that will fix the client's car. After that policy is exhausted, the non-owned auto liability policy defends and indemnifies the named insured up to the policy limit, typically $1,000,000

What if a caregiver does not own a car?

The definition of a non-owned auto is any auto not owned by the named insured that is used for business purpose. This could include any vehicle used by the caregiver – their mom’s car, a friend’s car, the neighbor’s car – from a coverage standpoint it would not matter.

Waht are the requirements for non-owned auto coverage

Most insurance companies require a motor vehicle record check upon hire and a driving standard of no more than two moving violations in the past three years, and no DUI/DWI/Reckless convictions in the past seven years.