Hired and Non-Owned Auto Coverage

In Newsletter Content by brandon

Many business owners use vehicles that they do not own for work purposes, but did you know that without Hired and Non-Owned Auto (HNOA) coverage on your policy, your business could still be exposed for liability?

Hired and Non-Owned Auto coverage is a type of commercial liability protection relating to autos used in your business that are not owned by your company but rather are leased, hired, rented, or borrowed by the business.  It also applies to the personal autos of employees and subcontractors that are used on behalf of your business.

Hired Auto coverage applies to cars or trucks that your business leases, hires, rents, or borrows whether driven by a 3rd party or by you or one of your employees.

Non-Owned Auto coverage applies to situations where employees on your errand could be using their own personal vehicles.  HNOA coverage is an auto “liability” coverage (i.e., bodily injury or property damage to others), so it does not provide physical damage for the autos being driven by “your company”. It only steps in when your company or employee is liable for the bodily injury or property damage to someone else.  It can help cover medical expenses (if the other party gets hurt in an accident), legal expenses, and physical damage to the other party’s vehicle(s).  It is important to note that HNOA does not provide coverage for the medical expenses or vehicle damage of your employees as it does not replace workers comp or their personal auto policy; it only steps in to protect your business if another party were to accuse your company of being liable.

If your business is utilizing any vehicles (including those driven by subcontractors) that are not scheduled on your policy, endorsing Hired and Non-Owned Auto coverage onto your Auto, General Liability, or Business Owners policy will cover this exposure.

Ask your agent or customer service representative if you need Hired and Non-Owned Auto Coverage.