Last week at the CACM Northern California Law Seminar, we had a little game for those that visited the Berg Insurance Agency booth. Pick a card, answer a question, and win a very cool Berg Utility Card (even if you got the answer wrong). We were impressed at the knowledge of most of the managers who answered questions, but there was one subject that seemed to be the one most managers really didn’t understand.

When looking at your liability insurance certificate, there is a section under “automobile liability,” with check marks for “hired autos” and “non-owned autos.” What exactly would this coverage be used for?

Let’s say a board member is using their private vehicle to drive to the bank to make a deposit for the association, and on the way they rear-end the car in front of them. They happen to mention that they are a board member on their way to the bank. Next thing you know, the association is served with a lawsuit from the driver who was hit and injured. (Don’t laugh – it has happened!)

Since the association doesn’t own the board member’s car, it is a “non-owned auto.” Defense would be provided to the HOA from that section of the liability insurance policy.

Let’s say that same board member hired an Uber to get to the bank that day, or a transportation company to take members of the community on a social outing, and there was an accident. Then what? If you guessed “hired auto” would provide coverage, you would be correct! The hired auto liability insurance will provide the HOA with a defense, should the HOA be sued.

If you notice any other confusing or mysterious coverages on your insurance policy, and need help with the explanation, give us a call! Education is very important to us and we are here to help!

Terri Guest, CIRMS, CMCA is the Northern California Sales & Marketing Representative for Berg Insurance Agency and can be reached at Terri@berginsurance.com. Have an insurance question? Ask Terri and your question may be the subject of next month’s edition of Coverage Corner! If your question is picked, you will win a gift card!