What happens when someone from your organization takes to the road? Your policy includes liability coverage for the cars they drive for tasks related to your organization—whether those cars are their own or are leased, hired, rented, or borrowed.

You’ll see the following terms in your policy:

Both of the above are covered automatically for liability, and your policy includes physical damage coverage, less your deductible. This coverage applies to damage or theft. Therefore, if you rent a vehicle on behalf of your organization, you don’t need to buy the rental company’s additional coverage for physical damage. Do make sure that you rent the vehicle in the organization’s name to use this coverage. For cars rented in an individual’s name, that person’s own coverage applies.

In general, the driver of a non-owned or hired auto is covered if he or she is a named insured acting on behalf of the organization. That excludes the following:

Individuals who use their own vehicles on behalf of the organization must look to their own automobile insurance for protection should they be involved in an automobile accident. We recommend that members and volunteers carry mininum limits of $250,000/$500,000/$100,000 or $500,000 combined single limits on their personal automobile insurance policies.

Furthermore, we cannot support designated driver programs unless they are held in conjunction with official fraternity/sorority events. Nor can we support Sober Sis programs in which chapter members sign up to drive other chapter members who have been drinking. These programs pose significant liability risks to the fraternity/sorority and expose the chapter members who act as designated drivers to liability. (Remember, a chapter member involved in an accident in her own vehicle must rely on her personal automobile insurance.) Please refer to the claim examples and our Department Position Paper on the topic for more information.