If your employees drive their personal vehicles for business errands in Pennsylvania, their personal auto policy will likely not cover your business if they cause an accident. To protect your company from being sued, you need Hired and Non-Owned Auto (HNOA) coverage, which can often be added to your general liability or commercial auto policy.
Understanding Employer Liability for Personal Vehicles in PA
The Limits of Personal Auto Policies: Personal insurance rarely covers business use. If an employee causes a crash while running a bank errand or visiting a client, their personal insurer might deny the claim, leaving your business on the hook for the damages.
Vicarious Liability in Pennsylvania: Under PA law, employers can be held legally responsible for the actions of their employees while they are on the clock. This means your business assets are directly at risk in a lawsuit if an employee causes a severe accident while working.
Hired and Non-Owned Auto (HNOA) Coverage: This specific endorsement steps in to cover the liability costs (property damage and bodily injury) if your business is sued due to an accident in a vehicle you don’t own. It is an affordable way to close a massive gap in your coverage.
What should you do next?
If you are reviewing your policy, make sure you aren’t overpaying or leaving yourself exposed. Check out the complete list of common questions at our Pennsylvania Business Insurance FAQs, or request a quick, no-pressure policy review to see if we can improve your coverage.