So, your employee borrows a vehicle to run a quick work errand. Maybe it’s your company’s van, or maybe it’s their own pickup truck with your logo magnets slapped on the sides. Either way, everything’s fine until — bam! — they get into a fender bender. Suddenly, you’re not just worrying about the damage, but also wondering: Are we even covered for this?
If you’ve ever asked yourself that question, you’re not alone. Commercial auto insurance is one of those things business owners don’t always think about until something goes wrong. And when it comes to borrowed vehicles, things can get a little tricky.
Let’s break it down.
What Counts as a “Borrowed Vehicle”?
A borrowed vehicle can be:
- A personal vehicle used for business purposes
- A rented truck or van for a one-day job
- A friend’s or employee’s vehicle being used temporarily for business
Now here’s the catch: your commercial auto insurance may not automatically cover these situations. In many cases, you’ll need special endorsements or separate coverage, depending on the vehicle’s ownership and how it’s being used.
Wait… Doesn’t My Employee’s Insurance Kick In?
Sort of. If your employee uses their own car for a work-related task (like delivering products or picking up supplies), their personal insurance is typically primary in the event of an accident. But most personal policies exclude business use — which means their claim could be denied.
What If We Rent Vehicles for Work?
If you’re renting a vehicle for short-term business use, you might assume the rental company’s insurance has you covered. But that coverage is often limited (and expensive). Many business owners skip that extra protection because they think their regular auto insurance will fill the gap.
Spoiler alert: not always.
Without the right commercial auto coverage, you could be stuck paying out of pocket for damage, injuries, or legal costs. Yikes.
How to Avoid Borrowed Vehicle Headaches
The best way to avoid these awkward insurance gaps? Get clear on how your team uses vehicles and talk to your agent about the right protection. Whether your business owns a fleet or occasionally borrows or rents vehicles, having the proper coverage in place can save you from a world of stress later on.
Get Covered with Confidence
Don’t let a borrowed vehicle turn into a costly mistake. At Avalue Insurance, we help business owners like you make sense of the fine print so you’re never caught off guard. Whether you need commercial auto insurance or a complete policy review, our team is here to help you feel confident and protected, both on and off the road.
Contact Avalue Insurance today, and ask us about our commercial auto insurance options! You can give us a call at 303-773-3332, email us at info@avalueinsurance.com, or request a quote right here online!
