As a business owner, you may be well-versed in the liability coverages you need to protect your business. However, you may not be as covered as you think without hired and non-owned auto insurance coverage.
Motor vehicle accidents can cost thousands and hundreds of thousands of dollars in damages. When calculating the cost of a motor vehicle accident, you must consider vehicle damages, injuries, wage and productivity losses, and other expenses. The cost of all motor vehicle crashes in the U.S. is over $10 million yearly. As a business owner, these costs should concern you and are a reason to invest in commercial auto insurance.
Defining Hired and Non-Owned Auto Insurance
What is hired and non-owned auto insurance? Many companies use non-owned vehicles regularly. Non-owned vehicles include vehicles that your company does not own. For instance, if one of your employees uses their personal truck to move equipment to a different job site, this is an example of a non-owned vehicle. Hired vehicles include rentals you lease for a short-term need, like moving equipment or traveling on a business trip.
Hired and non-owned insurance is a form of commercial auto insurance. If you drive vehicles that do not belong to your business for work-related tasks, those vehicles may not have coverage under your personal or commercial policies.
Determining Protections Offered By Hired and Non-Owned Auto Insurance
The type of business you run will determine the types of risks and exposures your company faces daily. Hired and non-owned auto insurance tends to close the gaps that business insurance won’t cover.
It helps cover legal expenses you may face if an employee has an accident. If one of your employees is found liable for someone’s injuries or property damage after an accident, then your company could be responsible for the costs of legal fees and any compensation the courts award the other party. Insurance, on the other hand, will help cover those costs.
Keep in mind that HNOA does not cover everything. For example, it will not typically cover repairs for the leased, rented, or employee-owned vehicle or incidents that occur if one of your employees is running personal errands or commuting to and from work.
Deciding Whether You Need Non-Owned Auto Insurance
Any company that frequently rents vehicles or trusts employees to use their cars while on the job would benefit from hired and non-owned auto insurance. Examples of employees who may need require coverage under the policy include:
- Delivery persons
- Administrative assistants
- Salespeople
To find out if your company is eligible for HNOA, an insurer will look at your credit history, auto insurance claims, and your company’s size. If your company has a safe driving history and financial stability, you will likely find an affordable, fair policy.
Finding the Right Hired and Non-Owned Auto Insurance
If you own a small business and frequently have vehicles for employee use or ask your employees to use them for work-related tasks, you need to consider hired and non-owned auto insurance. HNOA protects business owners when their employees have an accident while driving for business purposes.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
