What is Hired & Non-Owned Auto Insurance?
Hired and Non-Owned auto insurance can help cover incidents caused by cars or vehicle that your company uses but doesn’t own. Imagine if your employee runs a company errand in their own vehicle and gets into an accident. Or if your company sends a limo to pick someone up from the airport and something happens. Even if you have commercial auto insurance, there could be gaps in your coverage. Hired and Non-Owned auto insurance can help protect your business from these unexpected business-travel events.
What is Hired and Non-Owned auto insurance?
Non-Owned auto insurance is coverage helps protect businesses from incidents arising from cars they do not own. Often, businesses will rent a vehicle for business-related needs. This could be renting a car for a business trip or sending a car to pick up a client. It could even be as simple as asking an employee to grab some supplies on their way home from work. Using non-company-owned cars has its own set of risks.
What Does Hired and Non-Owned Auto Insurance Cover?
When someone from your company gets into an accident and the intention of their trip was business-related, your business could that its responsible for the costs of that accident! If the car they were using was their own or a rented vehicle, then that’s where this coverage can help protect your business. Hired and Non-Owned auto insurance coverage typically covers legal fees and damages associated with a vehicle accident. It could include medical bills, property damage, and repairs.
What Doesn’t It Cover?
Keep in mind that this coverage does not cover damages caused by a car that your company owns! If your company owns a car, then you will need commercial auto insurance. It also does not protect against non-business-related travel. So, if you are running personal errands or commuting to work, this coverage will not cover those sorts of accidents.
Who Needs This Coverage?
According to The Hartford, vehicle accidents are one of the costliest claims for businesses with the average claim costing $45,000! If your company rents or uses cars that you do not own, then consider getting this coverage. Some situations where Non-Owned auto insurance is helpful include:
- Using rental cars during a business trip.
- Your employees use their personal vehicle for work-related purposes.
- Your employees use their personal vehicles to run company errands.
- The company rents a limo to pick up someone from the airport.
How To Get Coverage
If you are thinking about getting Hired and Non-Owned auto insurance for your small business, the first step is to call your insurance agent! They can help you figure out if this coverage is right for your business and talk through the details of getting a policy. They can also help answer any questions you may have! At Encharter we are happy to talk to you about this coverage and any of your other business insurance needs!