What Is This Hired & Non Owned Automobile Liability Coverage?


By Ginny Harrington

What is this Hired & Non Owned Automobile Liability coverage and do I need it? This is a question that is frequently raised by business owners.

As a business owner do you need to rent or borrow a vehicle or request an employee run an errand for the business? This is when the coverage may be needed.

Hired and Non-Owned automobile liability covers bodily injury and property damage that is caused by a vehicle you rent or borrow (hired), or an accident occurs that is caused by a vehicle that is owned by others. This includes vehicles owned by your employees.

Let’s look at a couple of examples where you might need coverage.

You ask an employee to run to the bank and make a bank deposit for the business. The employee, driving their own vehicle, causes an accident. The employee’s auto liability insurance company is primary; however, Hired & Non Owned Auto will cover the liability of the business in the event the employee’s liability limits are not sufficient or your company is found legally liable.
You are on a business trip and you need to rent a car. Hired & Non Owned Auto Liability coverage could possibly save you money as you will not have to buy liability coverage from the rental agency and it will pick up the bodily injury and/or property damage caused by you in the event of an accident. It does not pick up the physical damage coverage to the vehicle and you should purchase the collision damage waiver from the rental company.
Typically this coverage is added to your Business Auto Policy; however, if you don’t own any vehicles it may be possible to add the coverage to your General Liability Policy.

Contact your agent at Watkins Insurance Group to further discuss your business’ auto coverage options.

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