What is Non-Owned Auto Liability Insurance and why does my Condo Association need it?




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There are several reasons why it is considered best practice for condo associations to carry non-owned auto liability. To explore why this might be, let’s first discuss what non-owned auto liability coverage is. 

Non-owned auto liability is meant to cover liability to an organization or entity related to vehicles it does not own. Basically, it protects the organization if it should get pulled into a lawsuit related to an auto accident that involves vehicles that the organization itself does not own. 

There are a few scenarios where this might be the case for a condo association, and why you would want the association master policy to include this coverage.

  • If any of the board members or employees of the association use their personal vehicles for association business, the association may be held liable for any accidents that occur while they are on the job. 
  • If the association hires a contractor or vendor that uses their vehicle for association business (such as driving onto the premises to perform repairs or driving to a store to purchase supplies) and an accident occurs, the association may be liable for any damages.
  • If the association uses a property manager or property management company, non-owned auto liability can help protect the association should the manager be involved in an accident while on association business.

Non-Owned Auto Liability insurance is important coverage for a Condo Association to add to its master policy as it covers the association's legal liability for damages caused by the use of non-owned vehicles - whether it is a personal vehicle of a board member or a vehicle of a contractor or vendor. This can help to protect the association's finances in the event of a serious accident.

We provide all lines of insurance coverage for condo associations in Newton, Needham, Wellesley, and all of Massachusetts. Contact Kovalev Insurance for non-owned auto liability insurance and request a complimentary consultation to ensure you are properly protected.

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