What is hired and non-owned auto?

Hired Auto and Non-Owned Auto Insurance
Protect Your Business From Costly Driving Liability

If your business rents vehicles or allows employees to drive their personal cars for work, you could be exposed to serious liability without realizing it. Hired Auto & Non-Owned Auto Insurance helps protect your business from lawsuits, claims, and uncovered accidents that standard policies often miss.

Many businesses assume personal auto insurance or general liability will cover these situations. In most cases, they don’t.

What’s Hired Auto Insurance?

Hired Auto Insurance provides liability coverage for vehicles your business rents, leases, or borrows for work purposes.

This includes:

Rental cars used for business travel

Rented vans or trucks for job sites

Borrowed vehicles are used temporarily for business operations

If an employee causes an accident in a rented vehicle while on the job, your business can be sued, even if you don’t own the vehicle. Hired Auto coverage helps protect your company from claims.

What’s Non-Owned Auto Insurance?

Non-Owned Auto Insurance applies when employees, partners, or volunteers use their personal vehicles for business activities.

Common examples include:

Employees driving their own cars to job sites

Sales staff visiting customers

Running errands or deliveries for work

While the driver’s personal auto insurance may respond first, it often has limited liability limits. If damages exceed those limits, your business can be held responsible. Non-Owned Auto coverage fills that gap.

What Hired & Non-Owned Auto Doesn’t Cover

Hired & Non-Owned Auto coverage is typically liability only. It usually doesn’t cover:

Physical damage to rented or employee-owned vehicles

Injuries to the employee driver

Vehicles owned by your business

Owned vehicles require a commercial auto policy, which should be coordinated with your HNOA coverage to avoid coverage gaps.

Who Needs Hired & Non-Owned Auto Coverage?

You likely need Hired & Non-Owned Auto Insurance if your business:

Doesn’t own vehicles but still has driving exposure

Uses rental cars or short-term leases

Reimburses employees for mileage

Has employees driving personal vehicles for work

Industries that commonly need this coverage include:

Contractors & construction companies

Towing & service businesses

Sales, consulting. And real estate firms

Healthcare and home service providers

Even occasional driving exposure can result in six-figure or seven-figure claims without proper coverage.

Why This Coverage Is Often Overlooked

Hired and Non-Owned Auto Insurance is frequently skipped because it sounds optional. In reality, it’s one of the most affordable and important liability protections a business can take.

One uncovered accident involving a rental car or employee vehicle can threaten your business’s finances, contracts, and reputation.

Get the Right Coverage — Not Just Any Coverage

Hired and Non-Owned Auto Insurance should be customized based on:

How often do employees drive

Whether vehicles are rented or reimbursed

Your industry risk profile

Proper liability limits and endorsements

This is where working with an independent insurance agent matters.

📞 Protect Your Business Today!

Call 952-222-8073 to review your Hired Auto & Non-Owned Auto exposure and ensure your business is properly protected.

Don’t wait for an accident to find out you’re uninsured.
👉 Call 952-222-8073 today and get expert guidance on the coverage your business truly needs.