Understanding Hired and Non-Owned Auto Coverage

Hired non-owned auto

Almost every business has risks associated with automobiles, even if they don’t readily recognize it. In fact, if you have employees, there is a chance you could be held accountable for their actions even while they are driving their own vehicles. Here are a few things you should know about hired non-owned auto coverage, and how it can protect you from liability.

Do You Need Hired Non-Owned Auto Coverage?

If any of your employers utilize their own vehicles to perform company business, then you could be held liable for their actions behind the wheel. A hired and non-owned auto insurance policy can provide you with financial protection if your employees ever engage in the following (or similar) scenarios with their own vehicles:

  • Picking up a client from the airport
  • Driving to the post office to pick up or drop off business mail and packages
  • Picking up lunch or office supplies at a manager’s request

Additionally, hired and non-owned auto insurance can protect you if you ever send a limousine, taxi-cab or other non-owned vehicle to pick up clients, salesmen or other employees. Coverage is activated if an automobile accident occurs in any of these scenarios.

There are some exclusions to hired non-owned auto coverage policies, so if you are considering adding this important coverage to your policy, be sure your insurance agent clearly explains all coverage options and exclusions.