What is Hired and Non-Owned Auto Insurance?
Hired and Non-Owned Auto Insurance is a type of commercial auto insurance that provides coverage for businesses when employees use personal vehicles for work-related errands. It also applies to business owners who rent or lease vehicles for their operations.
Key Coverage Details
- Extends liability coverage to employees using personal vehicles for business purposes.
- Covers business owners who rent or lease vehicles.
- Can be added to a Commercial Auto Insurance policy or, in some cases, to a General Liability policy.
What It Does Not Cover
- Physical damage to rented or borrowed vehicles.
- Damage to supplies or equipment transported in the vehicle.
Recommended Additional Coverage
Since this insurance does not cover physical damage to the rented or borrowed vehicles, businesses should consider purchasing the low-cost physical damage policy offered by rental companies.
Protection Against Uninsured or Underinsured Drivers
If an at-fault third party lacks sufficient coverage, the business’s underlying uninsured and underinsured commercial auto liability insurance will step in.
Final Thoughts
Hired and Non-Owned Auto Insurance is essential for businesses that frequently use vehicles they do not own for work-related purposes. It provides liability protection and covers defense costs in case of claims.
For further questions on this or any other risk management topic, please contact us. We look forward to assisting you!
