Hired & Non-Owned Auto Insurance

Coverage for employee-owned vehicles used for business
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Hired & Non-Owned Auto Insurance

Who's responsible for accidents caused by employees who are driving their own cars for work? And who pays for an accident if an employee crashes a car you've rented for work? The answer is Hired and Non-Owned Auto Insurance.

These two situations represent "gray area" that your standard Commercial Auto Insurance policy likely does not cover. Hired and Non-Owned Auto Insurance (HNOA) was designed to pay for accidents involving cars your business doesn't own but that are operating on behalf of your business.

Is Hired And Non-Owned Auto Insurance Important For Small Businesses?

Many small businesses can't afford to have a company car, delivery truck, or other specialty auto. Because of this, small-business owners often have to rent trucks and vans for delivery or rely on their employees to use their own cars throughout the day.

There's simply not enough money in the budget for the business to buy its own cars and trucks. Even if you do own a company car, many small businesses must hire additional vehicles during their peak seasons.

While using employee cars or rentals helps your business save money, it also exposes you to liability. It's important to remember that just because a business doesn't own the car that's involved in an accident, that doesn't mean that it isn't responsible for paying the damages.

For example, say an employee is driving their personal car to visit a client. While checking the GPS for directions, the employee rear-ends the car in front of them. In a situation like this, the business (not the employee) would be responsible for medical, legal, and auto repair expenses.

How Do I Get Hired And Non-Owned Auto Insurance?

Many businesses purchase HNOA Insurance as a "rider" to their General Liability Insurance policy. HNOA can also be purchased separately, but sometimes buying policies together can lower your insurance rates. When you fill out an application for General Liability Insurance, make sure to check boxes and answer questions related to Hired and Non-Owned Auto coverage.

What Isn't Covered By Hired And Non-Owned Auto Insurance?

As you would expect, Hired and Non-Owned Auto Insurance doesn't cover accidents when you're driving a car your business owns. For these situations, Commercial Auto Insurance covers your business's liabilities.

It's also important to note that Hired and Non-Owned Auto Insurance only covers accidents that occur while someone is driving for business. It doesn't cover accidents that happen during commutes or when an employee takes their car on a personal errand during work hours.

What Determines Hired And Non-Owned Auto Insurance Rates?

Much like your personal insurance, HNOA rates are affected by…

  • Your location (urban vs. rural, low crime rates vs. high crime rates, etc.).
  • The driving records of the vehicle operators.
  • The kind of vehicle that needs insurance.
  • How often the vehicle is driven for work.
  • Your demographics (age, gender, marital status, etc.).
  • The type of driving you do (deliveries, client visits, etc.).

Naturally, higher risks factors increase your rates. For instance, cars that are driven a lot by employees who have had accidents in the past require higher insurance rates. Expensive vehicles used for demanding work also come with higher premiums.

What Does Hired And Non-Owned Auto Insurance Cost?

Small-business owners who want to know how much Hired and Non-Owned Auto Insurance costs can submit an online insurance application for General Liability Insurance and select the HNOA options as they are presented throughout the document.

Once you've filled out an application, our agents send you a free, no-strings-attached HNOA quote. If you'd rather talk directly to an insurance agent, don't hesitate to contact us at 800-688-1984.

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