Hired cars carr be a headaehe

For most businesses, vehicles play an essential part in day-to-day operations. If involved in accidents, however, they can also be the source of serious liability claims.

One potential source of trouble, says the Insurance Information Institute, can be hired cars or trucks which can involve a firm in a liability claim even though the owner of the vehicles carries insurance. The same situation can arise in cases where employees use their own cars for business purposes.

Should an accident occur in either case, the injured party is almost sure to sue the firm as well as the vehicle's owner.

Before "automatically" renewing auto coverages, the Institute advises, the businessman should make sure that the policies provide adequate protection against auto accident claims.

A business person should also make certain that the owners of any cars or trucks hired on a regular or long-term basis carry sufficient

Story at a Glance

Are you really covered by ade- quate insurance for all eventualities on the cars you hire, lease or borrow?... what about employees using their own cars on company business?

insurance oftheir own. Further, see to it that your company is named as an "additional insured" in the policy. At the same time, consider adding "hired car" coverage.

Another source of trouble can be "borrowed cars" which can result in uninsured liability claims unless the firm's policy specifically includes "non-owned vehicles" coverage. This coverage offers protection on cars and trucks you neither own nor rent but which may be used in your business. For example, when a customeros vehicle is driven by one of your employees.

An often overlooked source of trouble are off-the-highway vehicles, coverage of which can get lost between your auto insurance and your public liability insurance. These include industrial tractors and other vehicles not licensed for highway use. Make sure that they are covered under one policy or the other.

In cases where employees use their own cars on company business, insist that they carry adequate liability insurance. B y having each employee file a "notification certificate" in the firm's name with his insurance company, the business-

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