Many businesses use vehicles in their day-to-day operations, some of which are not owned by the business. If you are a business owner and use vehicles during your operations, you need Hired/or Non-Owned Auto coverages. Rental cars and/or employees’ personal vehicles are categorized as Hired or Non-Owned autos. Unless you purchase these specific coverages, you could have a gap in coverage that will leave you open and liable to risks. For example, if one of your employees drives their personal auto to the bank to make a deposit and is involved in an accident, your business could be held responsible if your employee was found to be negligent.
- What are Hired Autos? These are vehicles that your business leases, hires, rents, or borrows which are used in the course of your business. (Be aware this coverage does not include autos that you rent, borrow, etc. from your employees, partners/members, or members of their households.)
- What are Non-Owned Autos? These are vehicles that your employees own which are used while performing duties for your business.
Hired & Non-Owned Auto coverage typically covers liability claims and defense costs such as attorney fees, judgments, and other court costs if your business is sued due to an auto accident involving these types of autos. Keep in mind that these are liability coverages and do not provide coverage for the policyholder for property damage or medical bills for you or your employees. Ask your agent about your auto policy’s physical damage coverage and if it meets your current needs. Also, such coverages do not help with incidents involving these types of vehicles when used for personal reasons.
You can obtain Hired & Non-Owned Auto coverages a couple of different ways, so make sure to talk to your agent about the best fit for you and your business. If your business also owns vehicles, then you should have a commercial auto policy in place and these coverages may be added. If your business doesn’t own any automobiles but still has the risks of Hired, Non-Owned or both then you might consider adding the coverage to your General Liability policy.
Speaking to your agent about whether these coverages would benefit you and your business is always a good idea. If you don’t have a current or trusted agent, give us a call at Sanger Insurance. We are located in and serve the North Texas area and would be happy to assist you or answer any questions you may have about your commercial insurance.