What is Extended Non-Owned Coverage and Why Should You Have It?

The Extended Non-Owned Coverage endorsement expands liability and medical payments coverage for individuals using vehicles furnished or regularly available for their use. This is commonly used for individuals provided a vehicle by their employer. This endorsement modifies standard exclusions and provides specific protections on an excess basis.

The endorsement schedule outlines that this coverage applies solely to the individual named in the schedule, excluding all others. However, there may be an option offered to extend coverage to the named individual’s spouse and family members.

Another significant benefit of this additional liability protection is its coverage for lawsuits between employees resulting from work-related accidents. Courts are more frequently allowing employees to seek damages from coworkers whose negligent driving caused their injuries. For example, if John accidentally caused an accident while driving his company car during a business trip with a coworker, this endorsement would provide John with liability coverage if his coworker sued him for the accident.

In summary, extended non-owned coverage is designed to provide broader protection and peace of mind when driving vehicles that aren’t owned by the policyholder, ensuring they are covered in various driving situations.

To learn more about the insurance products available, reach out to Chelsea Heatherington at Kingsgate Insurance.

Chelsea Heatherington, Farm & Ag Specialist

Call or Text: 515-302-8400

Email: chelsea@kingsgateins.com