Drive other car (DOC) insurance is an endorsement you can add to your commercial auto insurance to cover employees who use company-owned vehicles. This endorsement is a way of expanding your auto coverage to include non-owned vehicles these employees might rent or borrow.
A drive other car (DOC) endorsement allows business owners to expand their existing commercial auto coverage to include non-owned vehicles that they may rent or lease for a time.
DOC endorsements are added to a business auto policy, and are typically used by business executives and their spouses to provide coverage for any risks they may face when they rent, borrow, or test drive a vehicle that the company does not own.
A business that provides a company car for the personal use of an employee can insure the vehicle through the company’s commercial auto policy, in case of an accident involving bodily injury, property damage, or other risks.
This coverage would apply to any vehicles the company (the named insured) owns or leases for its employees. Employees don’t have to be an individual named insured on the insurance policy. Instead, they just need the company’s permission to use the vehicle.
However, if an employee leases, rents, or borrows a separate vehicle for personal use, they wouldn’t be covered by the company’s business auto policy while driving that non-owned car.
Someone with an employer-provided vehicle and insurance coverage would be unlikely to have a personal auto policy for themselves. This leaves the employee at risk of being without liability coverage when they drive a non-owned auto, such as renting a vehicle or borrowing a neighbor’s car.
To protect employees against these risks, a company can use its commercial auto insurance policy to offer broadened coverage with a drive other car endorsement that’s added to the company’s auto insurance.
A DOC endorsement lists the named individuals who are covered by the insurance company. It also includes an employee’s spouse who lives in the same home, but might not include other family members.
The coverage would include the same liability protections found in an employer’s commercial auto insurance. This could include physical damage coverage, medical payments (MedPay) coverage, and uninsured or underinsured motorist coverage.
It’s worth noting that a company’s commercial auto insurance must identify each vehicle the company provides for the personal use of employees, but it does not require the names of the employees themselves.
A DOC endorsement is typically reserved for a company’s executive officers and their spouses. It provides protection for when they rent, borrow, or test drive a vehicle that the company doesn’t own.
Without it, executives and their spouses are at risk of an expensive claim or lawsuit if they’re in an accident driving a car the company doesn’t own and insure.
For example, just borrowing a neighbor’s car for a quick errand could put a CEO in a financial bind if the vehicle is damaged in an accident, especially one involving injuries. A DOC endorsement could help pay for any medical bills, legal fees, and any resulting car repairs.
Although most states require auto liability insurance for businesses and individuals that own vehicles, executives wouldn’t need to buy their own personal auto insurance if their personal vehicle is a covered auto provided by their employer.
Businesses without employees generally do not need DOC. However, if you're a sole proprietor or independent contractor and drive a vehicle for work, you should still get the appropriate commercial auto coverage.
For example, if you drive your personal car for business purposes, you'd want to get hired and non-owned auto insurance (HNOA). Or, you may consider getting lease gap insurance, which is an endorsement you can add to your commercial auto policy that covers the total loss of a leased or financed vehicle.
A drive other car endorsement is typically reserved for a company's executive officers and their spouses.
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