Alabama Property and Casualty Practice Exam

What endorsement should a business get if concerned about liability when employees use their own vehicles for work?

1. Drive Other Car Coverage

2. Individual Named Insured Endorsement

3. Employee as Insured Endorsement

4. Symbol #9 Nonowned Autos Only

The correct answer is: Employee as Insured Endorsement

A business concerned about liability when employees use their own vehicles for work should obtain the Employee as Insured Endorsement. This endorsement extends the liability coverage provided by the business’s commercial auto insurance policy to include employees who are using their personal vehicles for business purposes. This is particularly important because, in many situations, personal auto policies may not provide coverage for business use, leading to potential gaps in insurance protection. By securing this endorsement, the business can ensure that its employees are adequately covered in the event of an accident or incident occurring while they are using their personal vehicles for work-related tasks. In scenarios involving liability during work-related activities, having this endorsement helps protect not only the employee but also the business itself from potential lawsuits or claims arising from such use. This type of coverage is critical for managing risk and ensuring proper protection in a business context.