My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Growth Strategies

Let's Take <i>Your</i> Car

Cover your drivers--no matter whose car they drive.
Magazine Contributor
2 min read

This story appears in the October 2001 issue of Entrepreneur. Subscribe »

Your company and personal vehicles are all adequately insured--why worry about additional coverage for vehicles you don't own? Because if you ever rent a car or truck for business or if employees ever use their own vehicles for company business--even if they're just making a quick trip to the store for supplies--and there's an accident, you could face serious financial liability, says Chip Curley, a property and casualty agent with Sehnert, Lumbra, Robinson & Associates in Maitland, Florida.

Protect your company with hired and nonowned auto liability, which covers bodily injury and property damage caused by the hired or non-owned vehicle. It does not pay for physical damage to the vehicle itself; that's covered by the owner's insurance.

Hired auto coverage kicks in if you or one of your employees rents a vehicle in the company name that is then involved in a crash. Nonowned auto coverage applies if an employee has a wreck while driving his or her own vehicle in the course of performing duties for the company. Curley says they're typically bundled together and fairly inexpensive; expect to pay less than $100 a year for $500,000 worth of coverage, which can be added to your regular auto policy. If you haven't purchased a commercial auto policy because your company doesn't own vehicles, you can add the coverage to your general liability policy.

A bonus: If you rent cars occasionally, having hired and nonowned auto liability insurance may save you money because you can avoid buying the liability coverage from the rental company.

Jacquelyn Lynn is a freelance business writer in Orlando, Florida.

More from Entrepreneur

Kim's expertise can help you become a strong leader, pitch VCs for capital, and develop a growth strategy.
In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur