Hired and non-owned auto insurance

Small businesses often need this coverage without realizing it. You might not think it’s a big deal to occasionally ask employees to use their own vehicles for work errands. But that can lead to auto liability issues.

For example, an employee might be involved in an accident while driving their car to meet a client. Because personal auto insurance doesn’t cover work driving, the other party could sue to recoup medical costs or other expenses.

If you're an independent contractor or self-employed, your personal auto insurance won't provide protection if you're in an accident while completing a work errand. HNOA insurance would provide the same coverage to you as if you're an employee.

If your business rents vehicles, including trucks or vans, HNOA insurance would protection for your rented automobiles.

For example, if you or an employee has an accident while driving a rented vehicle during a delivery run, HNOA insurance covers the costs of any resulting lawsuits.

Personal auto insurance policies only cover claims related to personal use, including your commute and travel unrelated to work. They have lower limits and usually cost less.

If you’re involved in an accident while driving your personal car for work, your insurance company might refuse your claim. That’s why small business owners who own a car used for work should consider commercial auto insurance or HNOA coverage.

If you’re uncertain which policy you need, check with an insurance agent.

Read more about the difference between personal and HNOA insurance.

HNOA insurance limits can be defined as the maximum amount of money your insurance company will pay. These limits are set when purchasing your HNOA policy and often match the limits of your general liability policy.

HNOA coverage often applies when you exceed the limits of your personal auto insurance. For example, if you’re driving a rental vehicle and rear end another car, then HNOA coverage would kick in if damages or medical bills exceed your personal auto policy limits.

Business owners can usually get proof of insurance online on the same day that they start a small business insurance policy through Insureon.

It can take several weeks for a traditional insurance agency to send a certificate of liability insurance to new customers. That’s an issue for business owners who need immediate proof of insurance.

With Insureon, you can quickly provide proof before a vehicle is used for business purposes. If your bank or lessor requires other proof of insurance, you can contact an agent for more information.