Does my ministry need non-owned and hired auto coverage?

Excitement is in the air as kids load pillows, bags and sunscreen into vehicles headed to church camp. The church owns one van, while another is borrowed from a church employee. If the borrowed van is involved in an accident, is your ministry responsible for damages?

When your ministry uses vehicles it doesn’t own for church-related tasks, you need non-owned and hired auto coverage to minimize financial burdens arising from vehicle liabilities, collisions and personal injury.

What’s the difference between hired auto and non-owned coverage?

The difference between these two types of coverage is based on who owns the vehicle: Non-owned coverage is for vehicles owned by employees, while hired auto coverage is for hired, rented, leased or borrowed vehicles not owned by the ministry or ministry employees.

When might a ministry need these types of coverage?

Some common church-related activities that could involve the use of a vehicle not owned by the ministry include:

• Transportation to summer camp
• Transportation for mission trips
• Travel to annual conventions
• Providing rides for children to VBS
• Providing a shuttle service for the elderly
• Picking up supplies or equipment

Who’s responsible?

In general, auto coverage follows the vehicle — not the driver. So, the vehicle owner is typically liable for damages when someone borrows the vehicle (with permission). That coverage can be transferred partially with hired and non-owned coverage.

Tips When Borrowing a Vehicle

If you borrow a vehicle, ensure everyone involved understands their responsibilities.

Make sure the vehicle owner:

• Is aware that their insurance may be responsible if the vehicle is involved in an accident
• Has the option to determine who can and cannot drive the vehicle
• Agrees to the anticipated time frame, distance and location

Make sure the driver:

• Understands that their insurance could become involved (e.g., if the vehicle owner’s insurance is insufficient to cover damages or other circumstances)
• Has access to the vehicle owner’s insurance information
• Provides a copy of their driver’s license
• Provides a copy of their insurance declaration page
• Is aware of any vehicle issues or features that may require an explanation
• Agrees to the anticipated time frame, distance and location

Tips When Leasing a Vehicle

If you lease a vehicle, consider the following recommendations.

• Understand the protection provided by the leasing company
• Meet the minimum level of car insurance required by the leasing company
• Document any existing damage to the vehicle before driving it
• Do not let others drive your rented vehicle (unless you’ve listed them on the rental agreement)

Vehicle coverage can be complex and varies by policy, so contact your insurance carrier to discuss your policy and ensure you’re protected.

You Have an Advocate On and Off the Road

Whether you’re exploring hired auto coverage, developing a church transportation policy or defending against cyberattacks, we’re here to advocate for your ministry. For a risk assessment or more information, contact us at PCSalesSupport@GuideStone.org or (214) 720-2868, Monday through Thursday, from 7 a.m. to 4:30 p.m. CT and Friday, from 7 a.m. to 4 p.m. CT.

This article is for informational purposes only. It is not intended to be construed as legal advice. Readers should use this article as a tool, along with best judgment and any terms or conditions that apply, to determine appropriate policies and procedures for your church’s risk management program.