More often than not, many business owners use vehicles they don’t directly own while doing business. What happens when these rented, leased, or borrowed vehicles face risks on the road? This is where hired and non-owned insurance comes in.
Keep reading to learn more about this coverage.
What is Hired and Non-owned Insurance (HNOA)
HNOA is a type of small business insurance. It covers the cost of property damages or personal injuries that another individual may have sustained from your company’s error. HNOA comes in two varieties:
- Hired coverage when you or your employees use a leased, borrowed, or rented car for business purposes.
- Employees’ vehicles are regarded as non-owned autos for work-related purposes. Compared to the employee’s auto coverage, it provides more liability protection against monetary loss and bodily injury.
What does Hired and Non-owned Insurance Cover?
This insurance comes in when an employee has an accident while driving a leased, rented, or personal vehicle for work. Aside from your employees, it also covers you. Hired and non-owned auto insurance will help ensure that any related litigation won’t push your firm into bankruptcy.
It offers insurance cover when utilizing a vehicle that your business doesn’t own for work-related operations.
It also covers a loophole in most commercial auto insurance policies. Some of such policies don’t cover accidents involving vehicles that the company doesn’t register.
Furthermore, you or your employees may be accountable for another person’s harm or property damage. Your insurance will cover any associated legal fees, settlements, or court-ordered judgments here.
However, hired and non-owned motor insurance doesn’t cover the following:
- Accidents that happen to workers when they’re traveling to work
- Occurrences that happen while employees are carrying out personal duties at work
- The costs of repairing a truck, van, or car leased, rented, or owned by an employee.
