Understanding Hired Non Owned Auto Insurance

Businesses often make the mistake of thinking they do not need auto insurance coverage if they do not own any company vehicles. However, this could not be further from the truth. Most businesses do not realize that they could potentially be held liable for bodily injury and property damage caused by employee accidents, even if the employees are not driving company-owned vehicles.

If employees become involved in accidents while performing work-related duties in their personal vehicles (such as picking up office supplies or dropping off products to a client), the company they work for could be sued. That is why hired non owned auto insurance is so important.

What Types of Businesses Need Coverage?

Any business owner that drives their own vehicle or has employees drive their personal vehicles for business purposes needs to have a hired non owned auto insurance policy, regardless of their business type. Start-up companies and corporate giants alike need this type of protection in order to avoid lawsuit defense costs.

Coverage Details

Non owned auto insurance typically covers bodily injury and property damage. This coverage extends to hired vehicles (borrowed or rented) and non-owned vehicles (including those owned by employees) and is designed to enhance or replace liability coverage issued by rental agencies.

Securing a Policy

Business owners should ensure that they have a hired non owned auto insurance policy in place by contacting their insurance agent and purchasing a policy.