What Hired and Non-Owned Auto Insurance Covers

Coverage Overview

Hired and non-owned auto insurance protects a business when employees drive vehicles that the company does not own, such as personal cars or rented vehicles used for work tasks. It covers liability for bodily injury and property damage, as well as collision and comprehensive loss to the hired vehicle, while also providing coverage for employees and passengers in the vehicle.

Key Protected Scenarios

1. Employee driving personal car for business: If an employee uses a personal vehicle for deliveries or client visits, hired and non-owned coverage steps in if an accident occurs. It pays for third‑party liability and may cover the employee's own damages if the policy includes a comprehensive or collision rider.

2. Rental or leased vehicles: Companies that rent cars for sales or service work can rely on hired and non-owned insurance to cover collision, theft, or vandalism, reducing the cost of purchasing separate rental insurance.

3. Contractor or partner vehicles: When a subcontractor or partner uses their own vehicle for company business, hired and non-owned coverage protects the business from liability if the contractor's vehicle causes an incident.

Coverage Limits and Exclusions

Limits are set per claim and per vehicle, often ranging from $100,000 to $500,000 for bodily injury per person and $250,000 to $1,000,000 for property damage. Common exclusions include:

• Operating a vehicle under the influence
• Use of the vehicle for non‑authorized business purposes
• Intentional or reckless conduct by the employee

When Small Businesses Need It

If a business has employees who regularly use their own cars for work, or if the company rents vehicles, hired and non-owned insurance is a cost‑effective way to manage risk without purchasing full fleet coverage. It also provides peace of mind for contractors who may otherwise lack adequate protection.

How to Obtain the Policy

Speak with a commercial insurance broker familiar with local regulations. Provide details on the frequency of vehicle use, types of vehicles, and employee driving records. The broker will tailor coverage limits, optional riders, and deductibles to match the business's risk profile.