What is Hired and Non-Owned Auto Liability?

Hired and non-owned auto liability coverage is important to have, especially when employing drivers to represent your company. It is a common practice for Applied Behavior Analysis (ABA) companies in California to require employees to use personal vehicles for work-related purposes. Whether attending assessments, meetings, or providing outpatient services, employees frequently drive to their appointments for work, which exposes the company to severe liability claims.

Hired and Non-Owned Auto Insurance Coverage

Since such situations create potential risks that are out of the company’s control, they need the protection of a Hired and Non-Owned Auto Liability insurance policy. This report will discuss the importance of Hired and Non-Owned Auto Liability coverage and offer advice for ABA companies to use best practices to minimize the risks associated with employee-driven vehicles.

What Hired and Non-Owned Auto Does For You

Hired and Non-Owned Auto Liability insurance protects ABA companies if an employee is in an at-fault accident while using their vehicle for work. However, this coverage is not the primary source of compensation in such scenarios. Instead, it should be a safety net when the employee’s auto insurance cannot cover the damages.

Employees must carry higher liability limits to decrease the likelihood of a company being involved in a lawsuit. Therefore, we recommend they have at least 100/300/100 liability limits and provide proof of those limits at every renewal instead of a generic auto insurance ID card. If an accident occurs, there will likely be enough money from the employee’s insurance to cover the damages and injuries, thus reducing the company’s chances of being sued.

MVR Checks

Another essential aspect of risk management for ABA companies is running Motor Vehicle Reports (MVRs) on their employees. MVRs contain valuable information about an individual’s driving history, including traffic violations, accidents, or license suspensions. In addition, companies can identify potential risks by regularly checking employees’ MVRs and taking appropriate action, such as offering additional training or suspending driving privileges for those with problematic records.

In addition to higher liability limits and MVR checks, promoting safe driving habits is another critical component of minimizing risks for ABA companies. For example, encouraging employees to enroll in defensive driving courses or providing in-house training on safe driving practices can help them become more aware of potential hazards on the road, improve their driving skills, and ultimately reduce the likelihood of accidents.

Making It Clear

Furthermore, ABA companies must establish a clear policy for using personal vehicles for work purposes. This policy should outline the expectations and responsibilities of employees, including maintaining adequate insurance coverage, keeping their cars in good condition, and adhering to all traffic laws. By communicating these expectations and monitoring compliance, companies can reduce the risks associated with employees driving their cars to work.

In conclusion, Hired and Non-Owned Auto Liability insurance is a crucial safety net for ABA companies in California. However, they should not use it as the primary source of compensation in the event of an accident. By ensuring that employees carry higher liability limits, running MVRs, promoting safe driving habits, and establishing clear policies for using personal vehicles, ABA companies can minimize the risks associated with employee-driven cars and focus on providing quality services to their clients.

About Olson Duncan Insurance

At Olson Duncan Insurance, we look to provide clients with a total solution, not simply a quote of an insurance contract. Our goal is to provide real value and build a long-term relationship based on trust. This is understood by the fact that we provide our applied behavioral analysis clients with industry-specific insurance and risk management services, including BCBA liability insurance, workers’ compensation, group health benefits, and anything necessary to protect your valuable work. We would love to get to know you and answer any questions. To find out more about how we can help you, or if you would like a quote, please call Daniel and our team at (310) 373-6441.