Rancho Mesa's Alyssa Burley and Associate Account Executive Jack Marrs talk about reimbursing employees for damage to their personal vehicles when they’re used for work-related duties.

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InsuranceForNonprofits.org

Director/Host: Alyssa Burley

Guest: Jack Marrs

Producer/Editor: Lauren Stumpf

Music: “Home” by JHS Pedals, “News Room News” by Spence

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transcript

[Introduction Music]

Alyssa Burley: Hi! This is Alyssa Burley with Rancho Mesa’s Media Communications and Client Services Department. Thank you for listening to today’s top Rancho Mesa news brought to you by our safety and risk management network, StudioOne™. Welcome back, everyone. My guest is Jack Marrs, Associate Account Executive with Rancho Mesa. He specializes in risk management for Human Services Organizations. And today, we're going to talk about reimbursing employees for damage to their personal vehicles when they're used for work related duties. Jack, welcome to the show.

Jack Marrs: Thanks for having me, Alyssa.

AB: Now, many employees of our nonprofit clients use their personal vehicles while performing work related duties. If an employee is in an accident in their vehicle while working, whose auto policy will respond?

JM: Oh, that's a great question. So the employee's personal auto insurance will respond to a third party liability claim, but only once the policy limits are exhausted will the organization's non-own auto liability coverage respond.

AB: Okay. So in that case, who is responsible for physical damage to the employee's vehicle?

JM: Repair costs are the responsibility of the other driver or the employee's auto insurance, depending on who is at fault. That said, a problem arises when personal auto carriers exclude coverage for incidents involving business related activities.

AB: Okay. And where in California are there any rules that require the employer to reimburse the employee for damages?

JM: Actually, yes, there is. California labor code 2802 states that an employer must indemnify an employee for all necessary costs or losses that the employee incurs in direct consequence of performing work related duties. It's important for nonprofit leaders to understand this because expenses may include the cost to repair an employee's personal vehicle following an accident.

AB: And where can organizations get coverage for situations like this?

JM: So nonprofit insurance Alliance of California, otherwise known as NIAC, offers a reimbursement up to $5,000 per incident and up to $25,000 for the policy period.

AB: Jack, if listeners have questions about their auto policies, what's the best way to get in touch with you?

[Outro Music]

JM: I can be reached at 619-486-6569. Or my email address, which is jmarrs@ranchomesa.com

AB: Jack, thank you for joining me in StudioOne™.

JM: Thanks for having me, Alyssa.

AB: This is Alyssa Burley with Rancho Mesa. Thanks for tuning in to our latest episode produced by StudioOne™. For more information, visit us at ranchomesa.com and subscribe to our weekly newsletter.