Have you ever had an employee travel in their own car to pick up supplies for the office? Has a team member picked up lunch for a business luncheon? What about visiting a client at an off-site location? These types of activities are common within any business. If your business requires you or your employees to travel in a vehicle that is not owned by your company, it is important you understand Hired and Non-Owned auto coverage and how it works.
Hired auto insurance refers to rented autos or car services, such as a taxi or limousine. Non-Owned auto insurance refers to a vehicle not owned or registered to the business, an employee’s car for example. In the course and scope of employment, if the employee is negligent, the employer has vicarious liability; this coverage protects the business owner.
Hired and Non-Owned liability cover accidents involving a vehicle that is either rented, or non-owned by the company. The coverage is typically added to a commercial policy automatically. If a commercial auto policy doesn’t exist, the coverage can be added by endorsement to the general liability coverage.
The purpose of hired and non-owned auto insurance is to protect your company against the many risks associated with operating a vehicle.
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