What is commercial auto insurance hired and non-owned? Commercial auto covers vehicles that a business owns, HNOA covers vehicles a business doesn't own - like rental cars or employees using their cars on company business.
Commercial Auto Insurance Hired And Non-Owned
If your business dealings require you or someone else to drive a vehicle for work purposes, auto insurance is a must-have.
This will cover a variety of needs, such as traveling between different locations, delivering goods to customers/businesses, and having your employees run errands for you, such as going to the bank.
If anyone drives a vehicle while at work for the company, they need some kind of policy to protect them and others. However, it can be difficult to determine which one you need, as you'll find commercial auto insurance hired and non-owned options.
This type of insurance covers any vehicles used to conduct business, whether you have company vehicles or use a personal one. It can also cover trucks and trailers, and you'll find a variety of options, such as liability only, personal injury/medical, collision, comprehensive, and more. Commercial auto offers higher limits than personal car insurance.
Hired And Non-Owned (HNOA)
Commercial auto insurance hired and non-owned - HNOA insurance covers property damage and bodily injury caused by any vehicle you hire, rent, or borrow. This type of policy can cover damages and legal fees that employees or you cause to others, such as vehicle repairs, property damages, and medical bills.
You'll find two options for this coverage, including liabilities that arise from using hired vehicles and liabilities resulting from cars that you do not own that are being used for business purposes. It is essential to learn the differences between the two, as they may not both be available in your policy.
Many insurance companies only offer one or the other, but you are likely to need both options.
Hired Versus Non-Owned Insurance
Hired coverage includes any vehicles that you hire, rent, borrow, or lease, as long as it isn't borrowed from a partner, member of your household, or employee. Likewise, the term you only refers to those in the policy declarations, so if each employee isn't listed by name, they may not be covered.
Non-owned autos refer to any vehicles that the business doesn't lease, own, or hire. These can be vehicles used by employees and partners. For example, if an employee leaves work in their car and gets into an accident, their insurance may request that your business is held liable because they were on company time. This type of coverage defends you in that case.
Other examples of non-owned vehicles include cars/trucks owned by your partner that she/he uses on business and vehicles that you or someone else borrows from a neighbor to use for business purposes.
In most cases, this type of insurance is added as an endorsement to your general liability coverage. Many times, companies are contractually required to have commercial insurance, even if they don't have company cars.
Examples Of When You Need HNOA
You may require hired and non-owned auto insurance for a variety of reasons, some of which you may not be aware. For example, if you send someone to pick up lunch or coffee, you will be required to have this coverage. You may also need it if you rent a car while on a business trip. Likewise, sending a limo to impress clients can also warrant such a policy. Such a policy protects you if there is a lawsuit resulting from a car accident that involves any vehicles used by employees during errands.
However, HNOA coverage isn't for commuting time or personal errands, even if the chore is done during business hours unless that person was scheduled for work during that time period.
Commercial Auto Insurance Hired And Non-Owned - The Bottom Line
We hope this article on commercial auto insurance hired and non-owned has been informative. Both commercial auto insurance and HNOA options provide your business with extra coverage for situations that happen during business needs. Many times, both policies can offer similar coverage, such as medical payments, uninsured motorist coverage, comprehensive, collision or liability. They can also provide add-ons better-suited for commercial needs.
Commercial auto insurance protects you from damage or loss to any vehicles you own, as well as any damages and loss that your car causes to others. Hired and Non-owned insurance covers injuries and property damages caused by a vehicle that is borrowed, hired, or leased and not owned by you. In most cases, HNOA policies do not cover injuries to the employee (or you) and may also exclude any personal property that was damaged in the accident.
Further Reading On Business Auto Insurance
Read through helpful commercial auto insurance for small business to help you better understand polices you own or are buying.
- Business Auto Coverage Form
- Bobtail And Deadhead Coverage
- Bobtail And Physical Damage Insurance
- Bobtail Insurance vs Non-Trucking Liability
- Commercial Auto Insurance Hired And Non-Owned
- Commercial Auto Insurance vs Personal Cost