Business Insurance

Business Insurance Hired and Non-Owned Auto Liability For Small Business


Hired and Non-Owned Auto Liability helps protect your business from any auto liability you or your employees may face. Any time an employee is conducting business and activates with a vehicle, your business can be held responsible for any accidents, bodily injury, or property damage that may occur.

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How Does Hired And Non-Owned Auto Liability Work?

Hired and Non-Owned Auto Liability is usually part of a general liability policy. However, depending on the type of policy you purchase, it may or may not be included. If your policy does not have this coverage, you are usually able to add the coverage for an extra cost.

This coverage applies to vehicles that are rented or hired during the normal operation of a particular business.

What Does It Cover?

Hired and Non-Owned Auto Liability covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or caused by non-owned vehicles (vehicles owned by others, including vehicles owned by your employees).

This coverage does not cover the physical damage to the vehicle itself—this part is important to understand. There is only coverage for a liability situation, meaning that any damage to someone else’s car or property is covered. Again, there is no physical damage coverage with Hired and Non-Owned Auto Liability.

If something does happen, coverage kicks in once found legally liable. The personal auto insurance policy will provide primary insurance to both employee and company if the employee is using their own vehicle on company business. If coverage limits are met on the personal auto policy, the liability can then fall on the business. If you don’t have Hired and Non-Owned Auto Liability coverage to help provide benefits, you will be stuck paying out of pocket.

If coverage is going to cover an incident, it will provide defense costs, property damage costs, and medical payment if someone is injured up to the stated limit.

Who Needs Hired and Non-Owned Auto Liability?

If you run errands for your business or need to rent a car for work travel, you will want this liability coverage if something happens.

Examples where Hired and Non-Owned Auto Liability can help cover your business include:

  • Employee is sent to pick up lunch
  • Rental car for business trip
  • Hire a limo service to pick up important clients.
  • Employee picking up office supplies
  • Employee goes to a post office
  • Employee runs to the bank

If you would like to learn more about Hired and Non-Owned Auto Liability, contact us any time for a free quote.

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