Many business owners do not understand the need for hired and non-owned auto insurance. They think that personal auto insurance covers business use. However, it does not. To cover vehicles used for business purposes, but not owned by the business, you need hired and non-owned auto insurance. This type of insurance covers:
- Employee-owned vehicles used for sales calls or client meetings
- Rental cars used on business trips
- Leased equipment or service vans
- Vehicles borrowed for job site transportation or deliveries
While commercial auto insurance typically covers company-owned vehicles, hired and non-owned auto insurance fills the gap when someone else’s car is used for business purposes.
What Does Hired and Non-Owned Insurance Actually Cover?
Hired and Non-Owned Auto Insurance covers:
- Bodily injury and property damage to third parties including judgments and settlements
- Legal expenses if you get sued
Why Business Owners Should Care
Even if your business does not own any vehicles, you could be held responsible if an employee causes an accident while driving for work. Hired and non-owned auto insurance helps protect against that liability.
For example: A salesperson gets into a collision while driving to a client meeting. The other driver sues your business for damages. Without hired and non-owned auto insurance your business could be left footing the bill.
How RMC Group Can Help
Not sure if your current policy includes hired and non-owned auto insurance coverage? RMC Group can help you find out—and fill in the gaps if needed.
Here’s what to expect when you work with us:
- A policy review to identify any coverage gaps
- Quick and simple quoting—usually within a few days
- Access to other important business liability coverages
Ready to review your insurance coverage or request a quote? Contact our office at 239-298-8210 or fill out our quote form here.
