top of page

IN-THE-KNOW

When Does Using Your Personal Vehicle for Work Become a Business-Use Insurance Problem?

You’re heading out the door when your boss says, “Can you drop this at the bank?” Five minutes later you’re in your own car, doing a company errand. Most of us assume this is a personal auto situation—and it often is. But there’s a second side people overlook: what happens to the business if there’s an accident while you’re on company time?

Two sides of the same trip

  1. Your vehicle and your policy. Your personal auto policy may address your car and your liability as a driver, depending on your coverage and the circumstances. If you’re regularly doing work errands, your insurer may want to know. Frequency, the type of errands, and whether anyone else in the company ever uses your car can matter.

  1. The employer’s exposure. Businesses can carry coverage designed for situations where employees use vehicles the company doesn’t own. This is often referred to as non‑owned auto. It’s meant to protect the business from its liability exposure—not to replace your personal policy or automatically take care of everything involving your car.

Questions for employees

  • Do you run errands in your car more than occasionally?

  • Has your agent confirmed how your policy treats that use?

  • Do you carry the limits your employer expects?

  • Who pays the deductible if your car is damaged while on a work errand? (Don’t assume—ask.)

Questions for employers

  • Do staff ever use their own vehicles for company business, even rarely?

  • Have you talked with your agent about non‑owned auto exposure?

  • Do you have simple guidelines (license checks, proof of insurance, acceptable limits)?

  • Do you reimburse mileage—and does that include clarity on responsibilities in an accident?

Michigan and Ohio notes

This isn’t legal advice, but context helps. Michigan’s no‑fault system and Ohio’s traditional liability setup mean the details of each policy matter. In both states, the safest approach is to review your policies and make sure you understand who handles what if there’s an accident during a company errand.

Bottom line

“Just run this over there for me” sounds tiny—until something happens between here and there. Employees and employers should both ask questions now, so there’s no confusion later.

1 day ago

When Your Barn or Shed Triggers a Homeowners Nonrenewal

You’ve cared for your home for years, but the nonrenewal letter on your kitchen table points to something behind the...

3 days ago

Roof Not Leaking? Why Cancellation Notices Still Happen and What You Can Do

The letter arrives and it feels unfair: your roof isn’t leaking, you’ve maintained your home, and suddenly your...

6 hours ago

Cancellations, Nonrenewals, and Correction Notices: What They Mean and How to Respond

A letter from your homeowners insurance company can feel like a punch in the gut. You’ve paid your premiums and cared...

2 days ago

Inherited or Vacant Home? Make Sure the Insurance Matches the Occupancy

After a loved one passes or when you move out before selling, it’s common to keep the utilities on, mow the lawn, and...

YOUR 
FAQ 
HUB!

When Does Using Your Personal Vehicle for Work Become a Business-Use Insurance Problem?

Writer: Tamara Champagne
Tamara Champagne
Aug 26
2 min read

You’re heading out the door when your boss says, “Can you drop this at the bank?” Five minutes later you’re in your own car, doing a company errand. Most of us assume this is a personal auto situation—and it often is. But there’s a second side people overlook: what happens to the business if there’s an accident while you’re on company time?

Two sides of the same trip

  1. Your vehicle and your policy. Your personal auto policy may address your car and your liability as a driver, depending on your coverage and the circumstances. If you’re regularly doing work errands, your insurer may want to know. Frequency, the type of errands, and whether anyone else in the company ever uses your car can matter.

  1. The employer’s exposure. Businesses can carry coverage designed for situations where employees use vehicles the company doesn’t own. This is often referred to as non‑owned auto. It’s meant to protect the business from its liability exposure—not to replace your personal policy or automatically take care of everything involving your car.

Questions for employees

  • Do you run errands in your car more than occasionally?

  • Has your agent confirmed how your policy treats that use?

  • Do you carry the limits your employer expects?

  • Who pays the deductible if your car is damaged while on a work errand? (Don’t assume—ask.)

Questions for employers

  • Do staff ever use their own vehicles for company business, even rarely?

  • Have you talked with your agent about non‑owned auto exposure?

  • Do you have simple guidelines (license checks, proof of insurance, acceptable limits)?

  • Do you reimburse mileage—and does that include clarity on responsibilities in an accident?

Michigan and Ohio notes

This isn’t legal advice, but context helps. Michigan’s no‑fault system and Ohio’s traditional liability setup mean the details of each policy matter. In both states, the safest approach is to review your policies and make sure you understand who handles what if there’s an accident during a company errand.

Bottom line

“Just run this over there for me” sounds tiny—until something happens between here and there. Employees and employers should both ask questions now, so there’s no confusion later.

Comments

bottom of page