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Personal Vehicle Use
Many organizations have volunteers or staff that will occasionally use their personal vehicles on behalf of the organization. Some examples include a board member travelling to a meeting, a group of employees carpooling to a conference in a one of the individual’s vehicles, or even a staff member driving to pick up doughnuts for everyone before a staff meeting.
If an employee uses their personal vehicle on behalf of your organization, however, it is their personal insurance that will pay for any claims; there is no top-up available from your organization’s policy. Although your organization may get sued along with the employee in the event of severe injuries from an accident, your organization’s insurance would only defend your organization, not the individual employee; the employee would need to rely on their personal insurer for defence.
Organizations insured through RMA Insurance carry non-owned automobile coverage with a $5 million limit that will defend them if they are named in a lawsuit. The volunteer or employee’s own insurer would defend and payout on their behalf.
For these reasons, we recommend the following:
For any questions or more information please contact our risk management team.