Commercial Auto vs. Hired and Non-Owned Auto Insurance
If your business operates vehicles in any way (e.g., you drive a company car or rent trucks to haul your products), you probably need auto insurance to address potential liabilities and losses. But what kind of auto insurance do you need?
That depends on your business and who owns the vehicles that you use. In some cases, you’ll need Commercial Auto. In others, Hired and Non-Owned Auto Insurance will be the policy to protect your business in case of an accident.
Look at the differences between these policies to see what kind your business may need before you go speeding off into the business world.
When Does a Small Business Need Commercial Auto Insurance?
Commercial Auto Insurance covers automobiles, trucks, and other vehicles that your business owns. Nearly any vehicle that a small business might use can be covered by this insurance as long as the business owns it and it’s used for work purposes. Policies can cover…
- Auto liability for when you damage another party's automobile.
- Medical expenses for injuries sustained in a crash.
- Physical damage caused by wrecks, theft, vandalism, and storms.
- Uninsured motorists who cause accidents and don’t have coverage.
Do you drive a company car to meet clients? Does your business own a van to transport equipment? Do you haul dirt or building material in a heavy truck? Then Commercial Auto Insurance is the coverage you’ll need.
When Does a Small Business Need Hired and Non-Owned Auto Insurance?
Hired and Non-Owned Auto Insurance covers liability expenses for accidents involving vehicles that your business uses for work purposes but doesn’t own. This includes vehicles that your business rents, as well as your employees’ personal vehicles that are used for work errands.
Say your employee is driving his car to drop off a business deposit at the bank. If he gets in an accident, the other driver can sue your business for expenses related to the crash (e.g., medical treatment and vehicle repair damages). HNOA Insurance can cover these costs.
Many companies rent trucks or vans for hauling goods or transporting passengers. If an accident should occur in one of these rented vehicles, HNOA Insurance can cover those liability expenses, too.
Note: HNOA Insurance doesn’t cover accidents that occur during commutes. It doesn’t cover accidents that happen when an employee runs personal errands during work, either. Lastly, it can’t pay for physical damages to the non-owned vehicle.
You can purchase Hired and Non-Owned Auto Insurance as a standalone policy or add it as a “rider” to your General Liability Insurance policy.
If your business owns vehicles but also rents vehicles or uses employee cars for business purposes – say during peak seasons or special events – you might need both auto insurance policies to cover your bases.
Can a Small Business Get by with Personal Auto Insurance?
If you use your personal vehicle for work, your personal auto insurance policy may not cover you. These policies generally exclude “business driving” from their coverage, so you’d be personally responsible for expenses if you get into an accident while delivering or hauling goods. Check to see what your coverage entails because every personal policy is different.
Free quotes for Commercial Auto and Hired and Non-Owned Auto Insurance
Fill out an online application to receive free quotes for Commercial Auto or Hired and Non-Owned Auto Insurance. You can also contact an agent to discuss which type of policy best suits your business. The road can be dangerous, so protect your business from the high cost of fender benders and collisions.