Hired and non-owned auto insurance (HNOA) is a type of insurance for small business owners who rent or lease vehicles, or ask employees to use theirs for company errands.
How does hired and non-owned auto insurance protect your business?
If you or an employee gets into an accident with a leased, rented, or personal vehicle, hired and non-owned auto insurance will make sure any resulting lawsuits won’t bankrupt your business.
Hired and non-owned auto coverage pays for legal expenses that arise when you or an employee has an accident in a vehicle that's not owned by your business. It closes a gap with most commercial auto insurance policies in which coverage is excluded for accidents involving business use of vehicles not titled to the company.
With hired and non-owned car insurance, you can have insurance protection while driving for work purposes even though your business doesn't own the vehicle.
If you or one of your employees is held liable for another person's property damage or injury, your insurance will cover attorney's fees, settlements, or court-imposed judgments.
However, hired and non-owned auto insurance does not cover:
- The costs to repair the leased, rented, or employee-owned car, van, or truck
- Accidents that happen while employees are commuting to work
- Incidents that occur while employees are running personal errands during the workday
Which small businesses are eligible for HNOA?
Hired and non-owned auto insurance is available to any small business that can fulfill an insurer’s underwriting requirements, which are based on information about a company such as size and credit history, as well as prior auto insurance claims. Companies that fail to demonstrate financial responsibility and a safe driving history may be denied insurance or be charged a higher premium.
Who needs hired and non-owned auto insurance?
Small businesses that frequently rent cars for business travel, lease vehicles for long-term periods, or ask employees to use their personal vehicles for business errands are good prospects for hired and non-owned car insurance. So are those that often rely on employee vehicles during peak work periods.
Companies in these industries will likely have a strong need for this type of protection:
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