Non-Owned Automobiles

Non-Owned Automobiles

You cannot insure a vehicle that you do not own. Employees or volunteers using their vehicle for your organization’s purposes must insure their own vehicles. You can reimburse them for some or all of their expenses, and there is insurance available to protect your organization, but the vehicle owner must insure the vehicle. If you require employees or volunteers to use their vehicles for your organization’s purposes you could incur liabilities as a result. You should consider how to protect your organization and employees and volunteers from claims arising from using non-owned autos.

In addition to the general risk management points above, the following are considerations regarding employees or volunteers using their own vehicles for your organization’s purposes:

1. Implement a written policy for non-owned autos including:

• If and how employees/volunteers will be compensated for using their vehicles.
• The minimum liability insurance you request/require that employees/volunteers carry and if/how you want them to prove it. For example, you might make an annual request that they show proof of insurance that covers business/volunteer use.
• How employees/volunteers will be using vehicles.

2. Check with your insurance representative to make sure that your organization has the necessary coverages to protect you in case an employee/volunteer who is not insured or inadequately insured has an accident while conducting your business.

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Claims Handling

Accidents: An accident is an event that results in harm to people, damage to property or equipment, or loss of process or productivity. An accident report (click here for a sample) should be filled out if an accident occurs.

Incidents: An incident is an event that, under slightly different circumstances, could have resulted in harm to people, damage to property or equipment, or loss of process or productivity. An incident report (click here for a sample) should be filled out each time an incident occurs.

1. Park the vehicle in a safe location and turn on applicable warning signals.

2. Attend to injured persons. Do not attempt to move injured persons unless it is to get him/her away from an area of immediate danger such as fire or traffic. Do not attempt treatment beyond first aid.

3. Call or ask a bystander to call 9-1-1 or the emergency number for the police, ambulance and fire department if necessary. Do not leave the scene of the accident unless it is to call one of those services.

4. Notify a supervisor as soon as possible.

5. Complete a fleet incident or fleet accident report.

6. Report accidents to your insurer. Provide them with:

• details of the accident; and
• information about steps that had been taken to avoid the accident.
  

7. Take pictures of the area where the accident occurred.

8. Record the names and contact information of any witnesses. Record detailed descriptions of the accident from the victim and witnesses.

9. Refer any discussions with the claimant to your insurer. NEVER ADMIT LIABILITY OR PROMISE TO PAY FOR EXPENSES INCURRED BY THE OTHER PARTY! Instruct drivers never to admit fault on behalf of the organization. They should say “I’m not permitted by my employer to discuss the circumstances of the incident. I will, however, be reporting the incident immediately, and an authorized person will contact you.”

10. Document all information related to incidents.

11. Investigate potential causes and implement preventative measures. Consider striking an Accident Review Committee, especially if you have many vehicles.