General Liability Policy in the US

Any advice?

[Tonearm]

I'm hiring my first 2 employees and part of their daily duties will be driving to the post office to drop off packages. I was concerned about my liability if they get into an accident while driving to the post office or back and it sounds like what I need is a general liability policy with "employers non-owned auto" coverage.

Can anyone recommend a good company for general liability insurance?

[Corey Bryant]

Well usually I would say AIG but right now, I would consider another company. Do you have health insurance or other type of insurance(s)? Usually it would be better to speak with the inurance rep in your area and he / she could offer some different flavors for you to choose from.

And then speak with your attorney as well about this practice to see what else you need. For example, he might recommend that you get an insurance plan for yourself because chances are, you will be sued as well.

Two years ago, when my roommate had to terminate an employee at a company, the employee left on bad terms, stating he was going to sue, etc. Since my rooommate has built up a good life, he wanted it protected. I think it only cost him about $20 more a month because he had everything through AAA.

I remember he called the local rep and he was covered when he was off the phone. Any accident that your employee has while on the clock can be costly.

This is one reason why so many companies use contractors - the company is not responsible if something were to happen (or at least take away most of the responsibility from the company).

[jsinger]

"This is one reason why so many companies use contractors "

Be VERY careful trying to turn employees into independent contractors. If they are really employees a court (and the IRS) will see thru that scheme in a minute.

[Corey Bryant]

You're right, but since the OP suggested he was going to hire employees, I suggested the contracting. I am sorry if I was misunderstood about converting an existing employee to a contractor.

[jsinger]

Corey, you're correct about considering using independent contractors in some situations

BUT he says "part of their daily duties will be driving to the post office to drop off packages." If they are leaving from Tonearm's location and returning even in their own cars to do other work, that doesn't sound like the driver's running an independent courier service.

You can imagine that this is a frequently and vigorously litigated issue when the driver has a bad collision. Victims would want to sue the company which often has deep pockets rather than the employee who may have no assets.

I believe that most business insurance includes some limited driver coverage for an occasional local trip to the bank or post office. Probably should set out your needs in writing and have your insurer reply in writing.

[Corey Bryant]

This is where he will want to consider employees or contractors. When I was managing an office, if one of the employees decided to drive over to the local eatery to get food for everyone, the employee would clock out.

Daily duties for most pizza deliverymen is driving, but most companies contract that out to help limit liability

[tangor]

Speak to an insurance agent. There are many different liabilities out there and equally as many different coverages for those exposures. Don't guess. ASK.

Heck, your insurance agent will welcome the visit---and opportunity to give counsel and perhaps sell some coverage!