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Non-Owned/Hired Auto Liability is an important component of event insurance that provides coverage for accidents involving vehicles used for business purposes but not owned by the insured organization. This type of coverage is particularly relevant for events where vehicles may be rented or employees/volunteers use their personal vehicles for event-related tasks.
Key Components
Non-Owned Auto Coverage:
This coverage applies when employees or volunteers use their personal vehicles for event-related activities. For example, if a volunteer uses their car to pick up supplies for an event and gets into an accident, this coverage would protect the organization from potential liability.
Hired Auto Coverage:
This aspect covers vehicles that are rented, leased, or borrowed for event purposes. If an organization charters a bus to transport attendees or rents a van for event logistics, hired auto coverage would apply in case of an accident1.
Coverage Details
Non-Owned/Hired Auto Liability typically provides:
- Bodily Injury Protection: Helps cover medical costs, lost income, and legal expenses if someone is injured in an accident involving a non-owned or hired vehicle used for event purposes.
- Property Damage Coverage: Assists with repair costs, legal fees, and settlement expenses for damage to other people’s property resulting from an accident.
- Legal Defence: Covers the costs associated with defending the organization in case of a lawsuit stemming from an auto accident.
Important Considerations
- This coverage is typically secondary, meaning it applies after the primary insurance (e.g., the employee’s personal auto insurance) has been exhausted.
- It does not cover damage to the non-owned or hired vehicle itself, nor does it cover injuries to the organization’s employees or volunteers.
- The coverage doesn’t apply to accidents that occur during normal commutes or personal errands, even if conducted during business hours.
Why It’s Necessary for Events
Events often require transportation of people, equipment, or supplies. Whether it’s sending a volunteer to pick up materials or renting vehicles for guest transportation, there’s always a risk of accidents. Non-Owned/Hired Auto Liability protects the event organizers from potential financial losses and lawsuits arising from such incidents. By including this coverage in event insurance, organizers can ensure they’re protected against unforeseen circumstances involving vehicles used for event-related purposes, providing peace of mind and financial security.