Hired and Non-Owned Auto - What is it?
Hired and Non-Owned Auto is liability coverage for vehicles that you or your employees use that are not owned or affiliated with the business. But is it automatically included in every business auto policy? Typically, your business auto policy will provide coverage for the vehicles the business owns but will not include vehicles rented or not owned by the company. This could include an employees car if they are driving their personal vehicle while working or if an employee is on a business trip and renting a car. It may seem strange that your business could be held liable, but if the employees personal auto policy doesn't cover the claim, your business could be held liable.
Why Would I Need Hired and Non-Owned as Part of My Policy?
A situation to think about is your business runs out of supplies and someone has to run to the store to purchase more. If that employee who is running to the store is in an severe accident and the other party is now disabled the damages could be excessive. Your employee's personal auto policy will typically be primary, but what if it doesn't cover the costs? What if your employee only has state minimum limits? Since this accident happened while they were working, they could sue the business for any damages that your employee's policy didn't cover. If the other party is disabled the amount they seek could be tremendous. If you don't have Hired and Non-Owned on your commercial auto policy they could come directly after your business.
Most business owner's are not prepared for large surprise expenses that could result from not being properly covered. If you would like to review your current policy or learn more please reach out to us today!
Call us at 614-878-0240 or email us at email@example.com and we will connect you with one of our commercial specialists today!