Protect your business from liability when employees use personal vehicles or rental cars for work. Get comprehensive coverage for vehicles you don't own at an affordable price.
Get Your Custom QuoteEmployee personal auto insurance excludes business use
General liability policies exclude auto-related claims
Rental car insurance is expensive and may have gaps
Inadequate coverage limits expose you to major lawsuits
Covers liability when employees drive personal cars for business
Fills the gap between general liability and commercial auto
Protects your business when employees rent vehicles
Provides high limits ($1M-$5M) at affordable annual premiums
Protect your business with comprehensive hired and non-owned auto insurance designed for modern businesses that use vehicles they don't own.
Marketing Consultant
"This coverage saved our business when an employee had an accident while visiting a client. Our hired and non-owned policy covered the $250,000 claim that exceeded their personal insurance. Absolutely essential protection."
Tech Services Director
"With our team constantly traveling to client sites in rental cars, hired auto coverage gives us peace of mind. The coverage is comprehensive and the annual premium is incredibly reasonable for the protection we get."
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Stay informed with expert articles about hired and non-owned auto coverage
Hired and non-owned auto insurance provides liability coverage for vehicles that your business uses but doesn't own. This includes employee-owned vehicles used for business purposes and vehicles rented or hired by your company. The coverage protects your business from liability claims arising from accidents involving these vehicles.
If employees use their personal vehicles for business tasks or your company rents vehicles, your standard commercial auto policy won't cover these situations. Hired and non-owned auto insurance fills this gap, protecting your business from potentially devastating liability claims when accidents occur with vehicles you don't own.
Hired auto coverage applies to vehicles you rent, lease, or borrow temporarily (like rental cars for business trips). Non-owned auto coverage applies to employee-owned vehicles used for business purposes (like driving to client meetings or making deliveries). Both protect your business from liability claims.
No, hired and non-owned auto insurance doesn't provide physical damage coverage for employee vehicles. It only covers your business's liability when an employee causes an accident while driving their personal car for business purposes. The employee's personal auto insurance typically covers damage to their vehicle.
Coverage limits typically range from $1 million to $5 million per occurrence. The right amount depends on your business size, number of employees who drive, frequency of vehicle use, and potential liability exposure. We recommend matching your limits to your general liability coverage for consistency.
Coverage typically includes driving to client meetings, making deliveries, running business errands, traveling between job sites, attending business conferences, and other work-related activities. However, regular commuting to and from work is usually excluded from coverage.
Yes, hired auto coverage specifically protects your business when employees rent vehicles for business purposes. This includes rental cars for client visits, business conferences, or temporary transportation needs. The coverage applies to liability claims arising from accidents in these rented vehicles.
If an employee causes an accident while driving for business purposes, their personal auto insurance typically pays first. If the claim exceeds their personal limits or their insurance denies the claim, your hired and non-owned auto coverage would then provide additional protection for your business's liability.
Workers' compensation typically covers medical expenses and lost wages for employees injured in work-related vehicle accidents, regardless of who owns the vehicle. However, this varies by state and specific circumstances. Hired and non-owned auto insurance focuses on liability to third parties, not employee injuries.
Premiums typically range from $200 to $1,000 annually, depending on factors like number of employees, coverage limits, business type, driving records, and claims history. The cost is generally very affordable compared to the potential liability exposure it covers.
Exclusions typically include personal use of vehicles, intentional acts, criminal activities, vehicles owned by the business (covered under commercial auto), and sometimes vehicles owned by employees' family members. Physical damage to the vehicles themselves is also not covered.
Employee waivers don't protect your business from third-party liability claims. If an employee causes an accident while on business, injured parties can still sue your company regardless of any waiver. Hired and non-owned auto insurance provides essential protection that waivers cannot offer.
Many general liability policies exclude auto-related claims, creating a coverage gap. Hired and non-owned auto insurance specifically fills this gap for vehicles you don't own. Some insurers offer this coverage as an endorsement to general liability, while others provide it as separate coverage.
You'll typically need details about your business type, number of employees, frequency of vehicle use for business, desired coverage limits, and any relevant claims history. The application process is usually straightforward since you're not insuring specific vehicles.
Many insurers offer hired and non-owned auto coverage as an endorsement to your general liability or business auto policy. This can be cost-effective and convenient. However, some businesses prefer standalone coverage for higher limits or specific terms.
Employees should understand that their personal auto insurance is primary, they should maintain adequate coverage limits, they must report business use to their personal insurer, and they should follow your company's vehicle use policies. Clear communication about coverage responsibilities is essential.
Contact your insurance carrier immediately after any accident involving business use of a non-owned vehicle. Provide all relevant details about the incident, business purpose of the trip, and any police reports. Your insurer will coordinate with the employee's personal insurance company as needed.
Coverage for independent contractors' vehicles varies by policy and state regulations. Some policies include contractors, while others exclude them. It's important to clarify this with your insurer and consider requiring contractors to carry their own adequate insurance.
Commercial auto insurance covers vehicles owned by your business and provides both liability and physical damage coverage. Hired and non-owned auto insurance only covers liability for vehicles you don't own. Businesses that own vehicles need commercial auto insurance, while those using non-owned vehicles need hired and non-owned coverage.
Consider whether employees drive personal vehicles for business, your company rents vehicles, employees travel for business, you have delivery or service operations, or your general liability policy excludes auto coverage. If any apply, hired and non-owned auto insurance is likely necessary for proper protection.
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