Robert owns a salon in a large mid-west city. Robert’s UPS delivery was late one day, and there was a perm in that delivery that Robert had to have for a client that afternoon. No problem, he thought, and asked Maggie, the receptionist to make a run to the beauty supply house across town.
She took her car, and off she went. But on the way back, she got distracted by an incoming text message, ran a red light, and smashed into another auto, totaling the other car and injuring its driver. Robert was liable. Why? Because Maggie was on a business errand for him, and his insurance wasn’t broad enough to cover that risk.
The moral of the story: An employee on an errand for you needs to take a car that is covered by your insurance, or you need NON-OWNED AUTO insurance for your salon or spa business.