Attention Property Managers, Corporations, Directors and Homeowners:
Please be advised that as a Condominium or property manager, corporate entity, Board of Directors, or vehicle owner, a significant risk exists as it pertains to “On property automotive care.”
For years now this issue has gone on unaddressed and only recently has it become an absolutely necessity for properties where vehicles are cared for or maintained to be properly protected from liability and litigation arising from improperly insured service providers.
Many “Home-watch” businesses and property maintenance and security personnel have been providing automotive services for absent residents under the guise that permission from the owner to care for or drive their vehicle ensures extension of liability coverage for the vehicle.
THIS IS NOT TRUE
The moment someone is PAID to maintain, care for, drive or even in some cases retain care and control of a vehicle, the extension of that insurance coverage is NULL & VOID!
The only way to properly protect concerned entities:
- Vehicle owner
- Condominium or property corporation
- Condominium or property Association (including association board members)
- Condominium or property Management companies
is through a COMMERCIAL liability policy that holds the designation specifying “HIRED AUTO.” Anyone providing an insurance certificate without that specific designation is NOT INSURED and places a liability risk at the feet of the above referenced for not demanding this designation as a prerequisite for providing service.
A recent example of this involved a condo maintenance employee who was hired by a resident to drive his car around the property garage occasionally “to rotate tires and ensure vehicle operation capabilities.” While driving through the garage, an elderly resident emerged from around a parked SUV. The driver “clipped her” fracturing her hip and injuring her shoulder. Named in the subsequent lawsuit were:
- Driver of the vehicle
- Owner of the vehicle
- Condominium Corporation
- Condominium Association
- Condominium Management Corporation
- Condominium Manager
Sadly this all could have been avoided if the service provider had been covered by a commercial liability policy that specifically designated “Hired Auto” coverage.