Many business owners assume that their commercial auto policy covers every situation involving a vehicle used for work purposes. However, there’s a common gap in coverage—when employees use their own personal vehicles or when your company rents a car for a quick business task. That’s where Hired and Non-Owned Auto Insurance becomes essential.
📞 Call us today at 909.466.7876 to review your current business insurance package and make sure you have the protection you need with Hired and Non-Owned Auto Insurance. Also, check out this article and Stop Cargo Theft With These 5 Proven Strategies
What Does Hired and Non-Owned Auto Insurance Cover?
Hired and Non-Owned Auto Insurance protects your business when a vehicle not owned by the company is used for a work-related activity. This includes everyday situations like:
- An employee driving their car to the post office
- A staff member picking up lunch for the team
- An employee giving a visiting client a ride from the airport
- You or a colleague is renting a car while traveling for business
Even though these tasks are informal and occasional, if an accident happens, your business could be held legally responsible, especially if the task was done at your request.
How Hired and Non-Owned Auto Insurance is Different from a Commercial Auto Policy
This is an important distinction:
- A commercial auto policy is designed for company-owned vehicles that are used regularly for work, such as by delivery drivers or service crews going from job to job.
- Hired and Non-Owned Auto Insurance, on the other hand, is for incidental use of personal or rented vehicles that are not part of your regular operations.
So, if you employ drivers or own a fleet, a commercial auto policy is a must. But if you occasionally ask employees to drive on your behalf using a non-company vehicle, you’ll need Hired and Non-Owned Auto Insurance to stay protected.
| Commercial Auto Policy | Hired & Non-Owned Auto Insurance |
|---|---|
| Covers company-owned vehicles | Covers vehicles the business doesn’t own (e.g., employee vehicles, rentals) |
| Includes liability and physical damage coverage | Typically liability-only, no coverage for vehicle damage |
| Required for businesses with fleet operations or regular vehicle use | Suitable for businesses with occasional or incidental vehicle use by non-owned vehicles |
Why This Coverage Matters
While the employee’s auto insurance usually serves as the first line of coverage in an accident, it may not be enough. If the damages exceed their policy limits, your business can be named in a lawsuit for the remaining amount.
Without Hired & Non-Owned Auto Insurance, you could be exposed to unexpected liability and high legal costs, all from a simple errand gone wrong.
Understanding the Two Key Areas of Coverage
- Non-Owned Auto Coverage: Protects your business when an employee uses their vehicle for a work-related task at your request.
- Hired Auto Coverage: Covers situations where you rent, borrow, or hire a vehicle for temporary business use.
Where Can You Get Hired and Non-Owned Auto Insurance?
Hired & Non-Owned Auto Insurance is often included as an endorsement on your General Liability (GL) or Business Owner’s Policy (BOP). If your business doesn’t own vehicles and doesn’t carry a commercial auto policy, it’s still possible to add this protection to your insurance plan.
Ask Yourself These Questions
- Have I ever asked an employee to pick up mail or supplies using their car?
- Has anyone on my team rented a vehicle for a work trip?
- Do I offer car allowances instead of providing company vehicles?
If you answered yes, your business may have a coverage gap that needs to be addressed with Hired & Non-Owned Auto Insurance.
Protect Your Business Today
At TPG Insurance Services, we help small and mid-sized businesses safeguard against overlooked risks like these. Even the smallest errand can turn into a major liability if you’re not properly covered.
📞 Call us today at 909.466.7876 to review your current business insurance package and make sure you have the protection you need with Hired and Non-Owned Auto Insurance. Also, check out this article and Stop Cargo Theft With These 5 Proven Strategies
