Does Commercial Auto Insurance Cover Employees Driving Their Own Cars in South Carolina?

This is one of the most common gaps we see in small business insurance reviews. Our commercial auto insurance in Greenville SC page covers business-owned vehicles. This guide explains the employee-owned vehicle problem.

When Employee Personal Vehicles Create Business Risk

What Hired and Non-Owned Auto Means

Hired and non-owned auto, often called HNOA, is coverage for vehicles the business uses but does not own. Hired autos are rented, leased, or borrowed vehicles. Non-owned autos are often employee-owned vehicles used for company business.

Why Personal Auto May Not Be Enough

An employee’s personal auto policy may respond for that employee, but the business can still have exposure. If the injured party believes the employee was acting for the company, the business may be brought into the claim. That is why personal auto and business auto should be reviewed together.

South Carolina Baseline and Business Reality

The South Carolina Department of Insurance auto insurance page explains the state auto insurance baseline. For business use, the bigger issue is whether the right policy is protecting the right party: employee, business, vehicle owner, and any contract requiring coverage.

Questions to Ask Before Employees Drive

• Are employees allowed to use personal vehicles for work?
• Do they make deliveries or transport clients?
• Do they drive between job sites?
• Does the business reimburse mileage?
• Does the business rent vehicles?
• Do contracts require commercial auto limits?

Where Morgano Fits In

For Greenville contractors, offices, restaurants, nonprofits, churches, and professional firms, Morgano can compare commercial auto, hired and non-owned auto, general liability, and umbrella coverage so the business is not relying on an employee’s personal policy by accident.