Consider the following scenario: a business executive (acting as an individual) borrows a neighbor’s car for personal use. The executive does not have a personal auto insurance policy, but instead relies on their business auto policy for insurance coverage, as the business furnishes them a company car. The executive gets into an accident, and causes serious injury to another driver.
Would this individual have coverage?
If the borrower does not have a Personal Auto Policy in force they would be without insurance coverage. No coverage would be afforded under the Named Insured’s Business Auto Policy because the neighbor’s car was not borrowed by or for the Named Insured (the business). It was borrowed for personal use.
However, this exposure can be afforded under the Business Auto Policy by attaching the Drive Other Car endorsement. Within the attachment the executive officer, spouse, or partner should be specifically named in its schedule. In doing so, they are being provided with personal non-ownership coverage.
In summary, if your auto insurance coverage is strictly carried on a business auto policy, and you don’t carry a personal auto policy, it’s highly recommended that you verify that the business auto policy includes the Drive Other Car endorsement.