Media Center


Protecting Your Business on the Road: The Importance of Hired and Non-Owned Auto Insurance

May 2, 2023

Sometimes business just can’t be completed without getting in the car. Chances are your employees use their own vehicles to meet clients, go to the bank, pick up lunch for the office, or make a quick trip to the store for supplies. All make for a smoother workday.

But there’s one problem. Your business could be held liable if the employee causes an accident while conducting business functions.

Many companies are protecting themselves by purchasing hired and non-owned auto insurance.

Hired autos are those that you lease, hire, rent or borrow that are not owned by your employees, partners or members. Non-owned autos are those owned by your employees, partners or members.

This policy will provide liability coverage for your business if an employee gets in an accident while driving their own vehicle for work. It will also provide protection when someone rents a vehicle for business purposes.

For example, an employee is rushing to meet a new client and accidentally runs a red light, causing a multiple-car crash in the intersection. The damage is so extensive that it exceeds the amount the employee’s personal auto insurance will pay. Because the employee was driving for work purposes, your non-owned auto insurance will kick in to cover the remainder.

Of course, you can minimize your overall risk with a few easy steps.

  • When doing pre-hire background checks, run a Motor Vehicle Record (MVR) report to ensure the person is a safe driver.
  • Set minimum age requirements for anyone who will be driving for work.
  • Create a Drivers Safety Manual: Include safe speeds, safe distance to follow the auto in front of the driver, tips to minimize distracted driving, and prohibit cell phone use while driving.

Oswald can help assess your needs and find the right coverage for your business.

For more information, please contact:

Wanda Mondry
VP, Team Leader
Property & Casualty


Note: This communication is for informational purposes only, and is not intended to offer legal, tax, or client-specific risk management advice. Information in this communication is not meant to describe specific coverages that may be advisable or available to you or your company, or to interpret specific coverages that may already be in place. General insurance descriptions in this communication do not include complete insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysisView our privacy notice.