FAQs
Frequently Asked Questions
Q: Why are the only limits $300,000 or $500,000?
A: The PNOA limits are meant to mimic those normally purchased by an employee for themselves. It is a distinct exposure from that of the employer’s fleet and hired/non-owned exposure.
Q: Is PNOA’s physical damage the same as that purchased on a personal auto policy?
A: Not exactly. PNOA’s physical damage coverage provides coverage for collision or overturn of the vehicle, including animal collisions. The intent is to cover damage that occurs to the vehicle while being driven. PNOA does not provide coverage for other comprehensive perils (e.g., fire, hail, theft, vandalism). The employee’s personal policy retains coverage for those causes of loss.
Q: Why not provide physical damage coverage on PNOA regardless of what the employee purchases personally?
A: We know in our industry that drivers who do not insure their vehicles for physical damage are less likely to get the damage repaired. Thus, we did not want to tempt someone to turn in such damage under PNOA when they do not invest in the same benefit personally.
Q: Not all of our client’s staff or volunteers turn in mileage for reimbursement. Will those team members still be covered?
A: PNOA coverage is designed to provide protection for those driving covered autos on behalf of the insured business, so reimbursement is not a factor in determining coverage. For accuracy and fairness in premium development, a purchaser of PNOA will need to establish a means of tracking all work-related mileage driven by employees or volunteers. It is the choice of the insured whether or not to reimburse mileage.
Q: What does PNOA cost?
A: Rates vary by state and the individual territories within them. The only way to discover the actual cost is to submit an application with accurate location data to create a valid quote.
Q: Is PNOA an auditable policy?
A: Yes, at the end of a policy period, the insured will be asked to provide actual mileage for the policy period that has just ended. Premium will be adjusted accordingly.
Q: Why is PNOA not available in all of the states that AF Group writes workers’ compensation?
A: Not all states will allow non-admitted commercial auto policies. We are working on ways to bring the coverage to more states.
