As a brokerage owner, you should prepare for possible auto accident claims against your employees, contracted agents, and home service providers. You need appropriate insurance coverage to protect your business from costly claims and possible lawsuits.

Categories of relationship

At some point, an employee contracted agent or service provider may have an auto accident within your firm’s business scope. Your insurance needs vary depending on your relationship with the at-fault individual. 

• Your salaried employees are under your supervision during duties performed for you. That means you may be liable for their auto accidents and need proper coverage.
• Contracted service providers, such as plumbers or electricians you send to a property, should be covered under their auto and business liability insurance. You have no liability so long as you use only service providers who are appropriately licensed, bonded, and insured. If a contracted service provider working for you lacks proper insurance and causes an accident, injured parties might turn to you for remuneration for losses.

Vehicle Coverage

• Your business auto liability coverage insures company-owned vehicles driven by salaried employees or contract workers such as agents. 
• You should have “non-owned” vehicle coverage as part of your policy for personal vehicles that salaried or hourly employees drive during their duties. 
• You must require 1099-paid contract workers, such as real estate agents who drive their personal vehicles, to add your business as an “added insured” to their policies and provide proof.

Coverage amounts

Along with choosing the right coverage, be sure you have adequate levels of coverage. If you carry policies with inadequate coverage limits and your employee or contractor causes an accident that results in losses above the limits, you could be forced to pay the overage. 

Consult with an insurance agent about the proper structure of your policies and sufficient limits. 

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