Do Your Employees Drive Their Own Cars for Work? Why You Need Hired & Non-Owned Auto Coverage

Fall can be a busy season for many businesses, and with that comes more employee driving, deliveries and client visits made in personal vehicles. If a member of your team gets into an accident while running a company errand in their own car, you may be on the hook for damages they cause to others that their personal auto policy will not cover.

How Hired & Non-Owned Auto Coverage Works

Hired and non-owned auto (HNOA) coverage can financially safeguard your business from liability arising out of two distinct situations:

• Hired autos: Vehicles your business rents or leases for work purposes
• Non-owned autos: Personal vehicles owned by employees that are used for business errands or tasks

Standard HNOA liability coverage may not pay for damage to the vehicle itself, though physical damage coverage for rented vehicles can often be added.

Why This Is Important

Any business that relies on employees to run errands, attend meetings or make deliveries in personal vehicles may be at risk without a commercial auto policy or endorsement. Because the risk is tied to business activity and not vehicle ownership, many businesses may have this exposure without the necessary coverage in place to address it.

Get the Right Policy

Contact Contractors Insurance Services today to explore your coverage options and request a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.