Quick Tip: Why Does My Association Need Auto Insurance If We Don’t Own Any Autos?

By December 4, 2017 April 15th, 2018 Blog, Business Protection, Quick Tips

Lisa Terrasi, Project Marketing Manager, discusses why auto insurance is important for your association, even if you don’t own any autos.

A common question we receive from board members of associations is “We don’t own any autos, why does my association have Auto Insurance included in the policy?”

Just because you don’t own an automobile, does not mean your association cannot be dragged into a lawsuit if someone else gets into an accident. Here are two situations in which Hired Auto and Non-Owned auto policies would come into play.

Let’s say the super or a board member took their car to Home Depot to buy a shovel for an upcoming snow storm and got into an accident injuring someone. The injured party could name the association in the lawsuit indicating that the driver was working on behalf of the association at the time. This would be a situation in which Non-Owned Auto would respond.

Now let’s take the same scenario but instead of the super, a hired contractor was driving to Home Depot to pick up supplies and got into an accident while working on behalf of the association. The Hired Auto portion would cover this type of incident.

Both coverages are generally inexpensive and are usually a requirement to be maintained if the association maintains a Commercial Umbrella, as the Umbrella policy would provide excess coverage.

For more information, please contact us.

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