When 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.

To 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.

Insurance 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.)

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