What it does
Under the business auto and motor carrier forms, an employee is not an insured while driving a covered auto that the employee (or a household member) owns. Symbol 9 or symbol 1 protects the business itself for non-owned autos, but the employee's own liability is left to the employee's personal auto policy. CA 99 33 adds to Who Is An Insured: any employee of the named insured is an insured while using a covered auto the named insured does not own, hire or borrow, in the business or the named insured's personal affairs.
Who needs it
Businesses with outside sales staff, home health aides, real estate agents, technicians or volunteers who use personal vehicles, and employers who want employee claims handled under the commercial policy when personal limits are low or excluded for business use.
Key points
- The auto must be a covered auto on the policy, so the policy needs non-owned auto coverage (symbol 1 or 9).
- Coverage is excess over the employee's own auto insurance because the auto is not owned by the named insured.
- Partners or LLC members using their own autos are handled by CA 05 25; volunteers by CA 05 24 or, for social service agencies, CA 99 34.
Quoting and selling notes
Rating manuals price the extension per employee using personal autos (the Massachusetts residual market manual, for example, directs use of CA 99 33 for employees using their autos in the employer's business). Ask how many employees drive their own cars and how often; consider it whenever an employer reimburses mileage.
