Hired & Non-Owned Auto Coverage
Ever send your employees on a work errand? Do they use their own vehicle? Do you ever take a business trip and rent a car? As a business owner you want to ensure that whenever you or your employees operate a vehicle that you are protected against potential accidents. If your business ever requires you or your employees to travel in a vehicle that is not owned by the company, then Hired & Non-Owned auto coverage is a necessity.
Hired Auto Coverage
Hired Auto coverage provides protection for vehicles that have been hired by your company related to your business operations. For example, if you or your employee are on a work trip and need to rent a car, use a taxi or limousine. In the event of a bodily injury or property damage claim resulting from this hired car, your business would be protected.
Non-Owned Auto Coverage
Non-Owned Auto coverage provides protection for vehicles that are used by the company or its employees that are not owned by the company. For example, if your employee gets in an accident in their personal vehicle while picking up construction material or supplies for a job, then any property damage or bodily injury resulting from the accident would be covered. Typically the employee’s personal auto insurance policy would pay their individual liability and this coverage would protect any business liability that arose.
What It DOES NOT Cover
- It does not cover the personal use of any hired or non-owned autos. If you’re using a vehicle for personal instead of business reasons and it becomes involved in an accident, the vehicle and passengers will not be covered.
- It does not cover damage to the actual vehicle itself. Hired & Non-Owned Auto coverage is similar to General Liability insurance in that it is third-party coverage, meaning it only pays bodily injury & property damage claims to an outside party.
- It does not apply to the individual employee(s) involved in the accident. If an employee is found liable for bodily injury or property damage, their personal auto insurance policy will pay out. If the claim exceeds their insurance limits, this coverage will not provide any additional protection and they can still be sued individually.
How Much Does It Cost?
As with any insurance policy the cost depends on a couple factors. For Hired Auto coverage, the carrier will want to know the “Annual Cost of Hire”, meaning how much does your company spend on rental cars a year; the more you spend the greater the cost of coverage. For Non-Owned Auto coverage, the carrier will want to know how many employees you have; the more employees the higher the cost of coverage.
Adding this coverage to an existing Commercial Auto policy is very affordable, costing less than a few hundred dollars a year on most policies. If you have a General Liability policy in place your current carrier may also offer it as an endorsement on the policy.
Let Us Help!
Chances are that you’ve never thought about if your business is covered if you send your employee on a work errand and they get in an accident. We’re here to help you out and answer any questions you may have. Call 855-95-SHIELD and talk to one of our construction insurance experts today!
