What exposure is created if Bilo Manufacturing allows employees to drive their own cars on company business?

When Bilo Manufacturing allows employees to drive their own cars for company business, it creates an exposure known as Employer's Nonownership Liability. This type of liability arises because the employer could be held responsible for any accidents or damages that occur while the employee is using their personal vehicle for work-related activities.

Nonownership liability is particularly significant because it involves situations where the employer does not own the vehicle being used, but still has a vested interest and potential responsibility for the actions conducted while the employee is on an assignment for the company. If an employee causes an accident while driving their personal vehicle for business purposes, the employer may be sued for damages, making it crucial for companies to have appropriate coverage for such scenarios.

This situation differs from other types of liability. Workers Compensation Liability pertains specifically to injuries that employees sustain while performing job duties, whereas General Liability Risk typically covers risks related to third-party bodily injury or property damage caused by the business's operations. Personal Injury Exposure involves violations of personal rights such as defamation or invasion of privacy, which does not directly relate to the use of personal vehicles in a business context. Therefore, the best answer in this situation is Employer's Nonownership Liability, highlighting the need for businesses to consider the implications of their employees’ use of