Claim Scenario: Hired and Non-owned Auto

By Heidi Stearn, The Hartford, Outpatient Healthcare Program Director

Dr. Smith has a patient coming in for her dentures at 11 a.m. It already is 10:30 and the dental lab still has not dropped them off at the office. Dr. Smith does not want to reschedule the patient, so he asks his receptionist to go to the lab to pick them up in her car, which usually occurs a few times a week. As soon as the receptionist pulls out of the driveway, she rear ends another car. After calling the police, the receptionist realizes the other driver has no insurance and she knows the other driver is going to be looking for her to cover the damage and medical bills. Without thinking, the receptionist indicates that she was just leaving the dental office to pick up the dentures and feels awful about the accident.

A few months pass, and Dr. Smith receives a letter in the mail from an attorney indicating he is responsible for the damages his employee caused, given she was in the scope of work. Dr. Smith quickly calls his insurance agent and learns that he has hired/non-owned coverage and he won’t have to pay anything out of pocket, given this accident occurred in the scope of employment. If he did not have this coverage, his practice could be held liable for the damages that his employee caused. Make sure your office insurance policy has hired and non-owned auto liability insurance!

Heidi Stern is responsible for working with FDA Services on the insurance program. Call FDA Services at 800.877.7597 today for more information.

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