Hired & Non-Owned Auto Coverage And Why Your Business Needs It

We all know how quickly auto accident bills can rack up.  Now think about those bills being pushed back on you as a business owner.  If I had my way, none of my clients would be able to deny Hired & Non-Owned Auto coverage.  If you own any type of business, you should have this coverage.  Period - End of Story. 


Shortly put, it's coverage for automobiles that are not owned by the company, but are used or rented for company use.  I'm not sure what a lot of insurance brokers have been advising their clients of lately, but I've seen a plethora of potential clients come in with no clue what Hired & Non-Owned Auto coverage actually is.  You should note that the typical personal auto liability policy does not cover business related transport.

The cost for Hired & Non-Owned Auto coverage is usually nominal.  But the risk of not having this coverage can be catastrophic.  Usually the cost of this coverage is less then $200 per year for $1,000,000 in coverage for the average risk.  Have you ever had an employee head out for a company errand to Staples, pick up lunch for the office or drop a deposit off at the bank?  Have you or any employee gone to visit a client for an appointment or rent a car for a business trip?  Most likely you answered yes to all of these.  And all of these examples are instances where Hired & Non-Owned Auto coverage would apply.

We've had some really unfortunate cases where companies go under due to declining Hired & Non-Owned coverage.  Although, those cases are extreme, they're not rare.  Any time you are involving a vehicle in any incident, the damage to another person or thing is multiplied extensively.

I remember in high school getting lectured on how our vehicles are "just like weapons...they can kill easily."  With the claims I have reviewed in my insurance career, that statement has never rang so true.