When does a small business need hired and non-owned auto insurance?
Imagine for a moment:
Your receptionist brings the mail to the post office once a week and drives their own car. They’re heading back to work and get in an accident, totaling their car and injuring another person. Your employee is sued and only carries the minimum limits required by the state. The amount of damages to the other party exceeds your employees auto policy limit. Could your business be liable?
The answer is yes.
In their day-to-day activities, many companies use cars they don’t own. This involves rental vehicles (hired) and vehicles owned by their workers (non-owned). These vehicles carry an extra risk for your business, but many company owners are not adequately prepared.
Hired and non-owned auto insurance (HNOA insurance) provides liability protection for injuries involving cars that the company does not own
If your business owns vehicles, but also rents vehicles or uses employee cars for business purposes, you should include HNOA insurance coverage to your commercial auto policy. Don’t have business owned vehicles? Not to worry, your agent can HNOA coverage with your business owners or general liability policy.
What to Read Next:
- What is Business Insurance?
- Why Do I Need Business Insurance if I Work from Home?
- Does Your Vehicle Wrap Have Separate Coverage?
Hired autos include vehicles hired, rented and borrowed by your business. If you were in an accident using a vehicle rented by your business, hired auto insurance can help with costs from a lawsuit. Make sure to discuss “hired auto physical damage” with your agent.
Vehicles owned by employees, but used for company business, are termed non-owned autos. This coverage normally kicks in if an employee were in an accident and found negligent. Non-owned auto liability insurance is applied after the employee’s personal auto limit is exhausted. Because of this, it is important to ensure that your employee has proper personal coverage as well.
The purpose of hired and non-owned auto insurance is to protect your business. Don’t let a gap in coverage leave your business assets at risk. Call your agent at Stromsoe Insurance agency today to discuss your business’ insurance needs.
Questions? Want to learn more? Here’s 4 easy ways to reach us:
PS Here’s a few words from a business that trusts Stromsoe Insurance Agency:
“Stromsoe Insurance Team is amazing, if every company that I worked with would operate like them, Los Angeles truly would be called city of angels.”
John Melkonyan – Crispy Crust Pizza – Hollywood, CA – Client Since 2005
PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!