What Is Hired and Non-Owned Auto Insurance?
Non-owner car insurance is a liability policy small-business owners often get when they rely on cars that belong to someone else. Many small businesses can't afford a company car, delivery truck, or other specialty auto. The result? They often rent delivery vans or ask employees to use their own cars throughout the workday. Even when they own a company car, some businesses need additional vehicles during the busy season.
Borrowing and renting cars may help your business save money, but it also brings new risks. Your business might have to pay for damages those vehicles cause, even if it doesn't own them.
For example, say an employee drives 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) is usually responsible for medical, legal, and auto repair bills.
And those bills can add up. According to a study from insurance provider The Hartford, the average small-business vehicle claim is $45,000.
What Does Hired and Non-Owned Auto Insurance Cover?
Non-owners car insurance usually covers your business's legal fees and the damages you cause other people. That can include…
- Medical bills.
- Damaged property.
- Auto repairs.
Unfortunately, these costs have been climbing steadily. According to the insurance news source Property Casualty 360, the cost of injury claims caused by car accidents rose 42 percent in the last 10 years.
What Hired and Non-Owned Auto Insurance Doesn't Cover
Non-owner car insurance doesn't cover accidents that happen when you're driving a car your business owns. You'll need Commercial Auto Insurance for that.
Another note: Hired and Non-Owned Auto Insurance only covers business-related travel. In other words, it won't cover accidents that happen during:
- Commutes.
- Personal errands.
Who Needs Hired and Non-Owned Auto Insurance?
Your business may need Hired and Non-Owned Auto coverage if you…
- Rent cars on business trips.
- Give employees a car allowance to use personal vehicles for work.
- Let employees drive their cars to pick up supplies.
- Borrow an associate's vehicle during your busy season.
If you regularly use vehicles you don't own, you may benefit from non-owners car insurance.
How Do I Get Hired and Non-Owned Auto Insurance?
Many businesses add Hired and Non-Owned Auto coverage to their General Liability Insurance. Non-owner liability insurance can be purchased separately, but sometimes buying policies together can lower your insurance rates.
To take advantage of this option, make sure to check boxes and answer questions related to Hired and Non-Owned Auto coverage when you're applying for General Liability Insurance.