Dear Colleagues,
I am trying to find out if anyone has a policy on damage reimbursement for an employee who has an accident in their personal car while on agency business. Specifically, this agency does not own any vehicles. The employee was sent out using her own car to pick up needed supplies for the agency. She slid into an intersection on icy pavement and her car was damaged ($3,000). She was not ticketed. She would like the agency to cover her entire repair bill, or her deductible and her increased rate of insurance. Any feedback would be appreciated (post in response to my comment below). Thank You
Richard E. Squire
Executive Director
ACCORD, A Center for Dispute Resolution, Inc.
30 West State Street
Binghamton, NY 13901
Phone: 607-724-5153
Rsquire@accordny.com
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Posted on behalf of CCSNYS insurance brokerage subsidiary Council Services Plus, www.councilservicesplus.com: It is your choice to pay the deductible or not, but if you do cover the deductible, this is usually the extent of what employers provide. Assuming you have Non-owned/Hired Car Liability coverage (which is a common endorsement on your general liability policy that you should be sure to add if you don’t have it in place), any liability issues would be covered (but not physical damage to the car). This also means the deductible would not be covered. There is an option to purchase physical damage coverage for non-owned/hired vehicles, but usually its limited to hired vehicles (such as rental cars). CSPlus has the ability to ask an insurance carrier to consider nonowned physical damage (but there is an expense involved...at least an extra $500 cost). This is the reason a written policy for employee vehicle use is so important. The policy should definitely consider this specific situation and how it will be addressed. Nonprofits may want to just consider this a cost of doing business, especially since it is less expensive alternative to buying and maintaining agency-owned vehicles.
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