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.
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.
What is hired auto coverage? | What is non-owned auto insurance? |
Hired auto coverage provides protection when your employees lease, hire, rent or borrow a vehicle in connection with your ministry’s activities (excluding employee-owned vehicles). | Non-owned commercial auto insurance covers vehicles owned by employees when used for ministry-related activities. |
Some common church-related activities that could involve the use of a vehicle not owned by the ministry include:
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.
If you borrow a vehicle, ensure everyone involved understands their responsibilities.
Make sure the vehicle owner:
Make sure the driver:
If you lease a vehicle, consider the following recommendations.
Vehicle coverage can be complex and varies by policy, so contact your insurance carrier to discuss your policy and ensure you’re protected.
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.