you send anyone on an errand in their own vehicle for your
business, you risk being sued for damages if that person gets in
an accident. Even the simplest, most benign type of errand such
as picking up supplies or dropping off a package can result in claims.
the extent your employee, friend, neighbor, associate or whoever
has insurance on his/her vehicle, you may be protected, but only
to the extent of the policy limits. If this person doesn't bother
carrying insurance, or has inadequate limits, you and your business
are likewise up the proverbial creek. A Milwaukee jury
awarded $17 million to an 82-year old semi-retired barber injured
by a volunteer driving her own vehicle to take a Virgin Mary statue
to an invalid. In that case, the award was made against
the Catholic Archdiocese, even though the actual group she volunteered
for was not the Archdiocese, but another organization which simply
met on church property.
for this risk is not generally included even on many of the broader-form
business insurance packages, unless you specifically request it.
The cost is relatively low, which is why underwriters generally
don't like providing it when they feel you have exposure. (Carriers
have historically been tapped for huge claims on non-owned vehicles,
while receiving relatively little premium to fund the losses.)