Understanding Hired and Non-Owned Auto Coverage

What Is Hired and Non-Owned Auto Coverage?

Hired and non-owned auto coverage is a type of business insurance that provides protection for businesses when their employees use vehicles that are not owned by the company. This type of coverage is generally purchased as an endorsement to a business’s commercial auto insurance policy, and it can provide protection for liability and physical damage in the event of an accident. In most cases, the coverage can be tailored to the specific needs of the business.

Why Do Businesses Need Hired and Non-Owned Auto Coverage?

Hired and non-owned auto coverage is important for any business that has employees who use their own vehicles or vehicles that are rented or borrowed for business purposes. Without this coverage, businesses could be held liable for any accidents that occur while a vehicle is being used for business purposes. Even if the business is not legally liable for the accident, it may still be subject to claims for damages or litigation. By providing hired and non-owned auto coverage, businesses can protect themselves from these types of claims.

What Does Hired and Non-Owned Auto Coverage Cover?

Hired and non-owned auto coverage typically provides protection for liability and physical damage in the event of an accident. Liability coverage pays for damage to another person’s property or injury to another person as a result of an accident. Physical damage coverage pays for damage to the vehicle itself. In addition, some policies may also provide coverage for medical expenses, towing, and other related costs.

Who Is Covered by Hired and Non-Owned Auto Coverage?

Hired and non-owned auto coverage typically covers the business, its employees, and any other individuals who use the vehicle while it is being used for business purposes. The coverage applies to any vehicle that is not owned by the business, including rented or borrowed vehicles, as well as vehicles that are owned by employees.

How Can Businesses Get Hired and Non-Owned Auto Coverage?

Hired and non-owned auto coverage is generally purchased as an endorsement to a business’s commercial auto insurance policy. Businesses should work with their insurance provider to customize the coverage to meet their specific needs. The insurer will also be able to provide advice and guidance on the type and amount of coverage that is best suited to the business’s needs.

Conclusion

Hired and non-owned auto coverage is an important type of insurance for businesses that have employees who use their own vehicles or vehicles that are rented or borrowed for business purposes. The coverage provides protection for liability and physical damage in the event of an accident and can be tailored to the specific needs of the business. Businesses should work with their insurance provider to obtain the coverage that is right for them.