insurance questions, employee's vehicle

Discussion in 'Business Operations' started by swing blade, Feb 29, 2004.

  1. swing blade

    swing blade LawnSite Member
    Messages: 123

    Hi guys,

    I am looking at hiring an employee and I want him to use his own truck. He is fine with this idea, as he is a close friend of mine. The question I have is as his employer I guess i would need to have insurance coverage on his truck while he is working right? And if so, how does that work and what type of policy would you recommend. I have talked to an insurance agent already, but I swear he is talking in code because I am more confused now than before I talked to him.

    Also, I had a question involving general liability. I was advised by a friend that i should carry a 1 million dollar GL policy with an umbrella. I have myself and three employees, working as two seperate crews. We are doing lawn maint. as well as landscaping. i am renting any equipment I need like bobcats, dingos, penske trucks, etc. I know that i also need to include coverage for the rental equipment.

    How do I need to setup my policy in order to cover all of this, and for the rental equipment what kind of coverage do you guys usually carry and at what dollar amount. i just don't want to be under-insurred.


  2. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

    Could you contact another insurance agent then and see if they can explain it better?
  3. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Messages: 295

    Make sure your company auto policy included 'hired and non-owned' coverage. Non-owned will protect you, not your employee, and is excess over the employees coverage. To further protect yourself ask for a cert. of ins. from the employee, just to make sure he actually has coverage. Depending on how your employee is going to use his vehicle, his company may want him to purchase a commercial policy also. Underwriting rules vary by company, some don't want any commercial exposure, some don't want the exposure if they will be pulling a trailer.

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