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Hired and Non-Owned Auto Insurance: Why it Matters to Your Business

February 7, 2020

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.

Hired and Non-Owned Auto Covers:

  • Protects a company if an employee is found liable as a result of the accident
  • Covers defense costs in the event the driver is found at fault
  • Bodily injury or property damage

Hired and Non-Owned Auto Does Not Cover:

  • Actual damage to the vehicle
  • Does not cover the individual employee’s liability

The purpose of hired and non-owned auto insurance is to protect your company against the many risks associated with operating a vehicle.

Contact me direct or learn more on our Property & Casualty page.

Allison Groneck, CPCU
Client Manager


Note: This communication is for informational purposes only. Although every reasonable effort is made to present current and accurate information, Oswald makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information. View our communications policy.