Employee Auto Coverage
Employee Auto Coverage, formerly known as Primary Non-Owned Auto (PNOA), is a product designed to address the needs of businesses in healthcare, insurance and non-profit organizations. Employee Auto Coverage insurance purchased by a business or non-profit organization provides primary auto liability and optional physical damage for employees while driving their personal vehicles for business purposes.
Fundamental Underwriters offers Employee Auto Coverage in the following states: AL, AR, AZ, CA, CO, DE, GA, IA, ID, IL, IN, LA, MI, MO, MS, MT, ND, NE, NJ, OH, OK, OR, PA, SD, TN, TX, UT, VA, WA, WI and WV
~ Better Protection for Staff
- Addresses potential coverage gap between employee’s personal auto policy and employer’s commercial lines non-owned auto coverage.
~ Improved Risk Profile for the Insured Organization
- Knowing risk is mitigated with selected coverages and limits provides comfort to the employer.
~ Streamlined, Consistent Management of Employee Vehicle Operation
- Employer experiences reduced administrative costs and stress of monitoring adherence to insurance requirements.
~ Recruiting and Retention Tool
- Employee is not required to purchase additional personal auto insurance limits to satisfy the employer’s requirements.
- Employee does not need to classify a personal vehicle as “business use,” which may be considered a less desirable risk by their insurer.
- Employees have peace of mind knowing their employer will cover accidents occurring on the job.
Frequently Asked Questions
Q: Why are the only limits $300,000 or $500,000?
A: The limits are meant to mimic those normally purchased by an employee for themselves. It is a distinct exposure from that of the employer’s fleet and hired/non-owned exposure.
Q: Is Employee Auto Coverage’s physical damage the same as that purchased on a personal auto policy?
A: Not exactly. Employee Auto Coverage’s physical damage coverage provides coverage for collision or overturn of the vehicle, including animal collisions. The intent is to cover damage that occurs to the vehicle while being driven. Employee Auto Coverage does not provide coverage for other comprehensive perils (e.g., fire, hail, theft, vandalism). The employee’s personal policy retains coverage for those causes of loss.
Q: Why not provide physical damage coverage on Employee Auto Coverage regardless of what the employee purchases personally?
A: We know in our industry that drivers who do not insure their vehicles for physical damage are less likely to get the damage repaired. Thus, we did not want to tempt someone to turn in such damage under Employee Auto Coverage when they do not invest in the same benefit personally.
Q: Not all of our client’s staff or volunteers turn in mileage for reimbursement. Will those team members still be covered?
A: Employee Auto Coverage is designed to provide protection for those driving covered autos on behalf of the insured business, so reimbursement is not a factor in determining coverage. For accuracy and fairness in premium development, a purchaser of Employee Auto Coverage will need to establish a means of tracking all work-related mileage driven by employees or volunteers. It is the choice of the insured whether or not to reimburse mileage.
Q: What does Employee Auto Coverage cost?
A: Rates vary by state and the individual territories within them. The only way to discover the actual cost is to submit an application with accurate location data to create a valid quote.
Q: Is Employee Auto Coverage an auditable policy?
A: Yes, at the end of a policy period, the insured will be asked to provide actual mileage for the policy period that has just ended. Premium will be adjusted accordingly.
Q: Why is Employee Auto Coverage not available in all of the states where AF Group writes workers’ compensation?
A: Not all states will allow non-admitted commercial auto policies. We are working on ways to bring the coverage to more states.