I Am In a Vehicle With A Client, AND There Was An Accident!

Very possible scenario, and the next question is, am I covered by my insurance?

This question is probably one that should be asked well before the accident occurs.  In a previous article (HNOA Blog), we’ve covered the importance of purchasing Hired and Non Owned Auto Liability Insurance , also referred to as HNOA, but now we’re also incorporating the client as a passenger.  In all likelihood, when the accident takes place, its serious.  It can involve one or more moving vehicles weighing several tons traveling at high speeds, elderly patients, and possibly those with prior injuries or Alzheimer’s.  It goes without saying that something more grave could occur, than having a patient simply fall from a stationary position.

The answer to this question is quite simple, the insurance responding to the claim is the one that accompanies the driven vehicle….

Whether it is a caregiver’s vehicle, client’s vehicle, or possibly the company’s vehicle, that respective auto insurance policy maintained for that vehicle would step in if there was ever an auto accident.  The party that carries this insurance is then responsible for paying any deductibles as well.  The company’s HNOA policy would then respond in excess of the client’s or caregiver’s personal auto policy, but only in the event the primary insurance limits were exhausted.

Typically, Professional and General Liability policy have strict auto exclusions, and it would be difficult to afford coverage under this policy.  So that’s why it is so important that a defined Commercial Auto policy or HNOA endorsement is maintained by the company in the event a large claim occurs.

The company should exercise some important loss control steps as well, and your insurance carrier or broker can help:

  1. Whether the client vehicle or caregiver vehicle is driven, regular vehicle inspections should be performed
  2. At least minimum state auto insurance limits should be maintained
  3. Motor Vehicle Record checks should be performed on the caregivers
  4. Clear understanding of financial responsibility by all parties in the event an accident takes places. This can sometimes be in the form of a contract with the client and the home care agency.

MPL Risk is an insurance agency working with healthcare organizations. We can provide a complimentary review of your insurance program and obtain quotes, give us a call today at 267-888-4790 or send us a message.

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