Employer as an Additional Insured

June 12, 2013

Is the employer of the named insured on a personal auto policy automatically included as an additional insured when the named insured employee is using his own car on business?

Alabama Subscriber

The definition of an insured under the PAP includes any person or organization with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under the terms of the PAP.

This means that if the named insured is using his covered auto on company business and causes an accident, the employer will be covered as an insured under the employee's PAP. The named insured, by being an employee and by using his covered auto on company business, makes the employer legally co-responsible for BI or PD caused by the actions of the named insured. So, if both the named insured and the employer are sued and found to be legally responsible for the BI or PD, the named insured's PAP will apply for both.