Hired Non-Owned Insurance

Hired and Non-Owned Auto (HNOA) insurance is usually an endorsement or rider to your commercial auto, general liability insurance or business owner’s policy (BOP) designed to protect businesses that use vehicles they don't own for work purposes. This can include situations where you:

• Rent or lease vehicles: For example, construction companies might rent trucks for specific projects, or catering companies might lease vans for deliveries.
• Allow employees to use their personal vehicles for business: Salespeople often use their own cars to visit clients, and delivery drivers might use their own vehicles for local deliveries.

What does HNOA insurance cover?

HNOA insurance acts as an extension of your commercial auto insurance and generally provides two main types of coverage:

Hired Auto Coverage: This protects your business if you or an employee has an accident while driving a rented or leased vehicle for business purposes. It covers:

• Liability: Medical expenses and property damage to others caused by the accident.
• Collision: Damage to the rented or leased vehicle, depending on the specific policy terms.

Non-Owned Auto Coverage: This protects your business if an employee has an accident while using their personal vehicle for business purposes. It typically covers:

• Liability: Medical expenses and property damage to others caused by the accident.
• Optional: Some policies might offer additional coverage for damage to the employee's personal vehicle, but this is not standard.

Why is HNOA insurance important?

• Protects your business from financial losses: If an employee has an accident while using a rented, leased, or personal vehicle for business, your business could be held liable for damages. HNOA insurance can help cover these costs and prevent your business from facing financial hardship.
• Fills the gap in standard commercial auto policies: Standard commercial auto policies typically only cover vehicles owned by the business. HNOA insurance fills this gap and provides coverage for vehicles you don't own but use for business.
• Complies with the law: In some states, businesses are required to have HNOA insurance if they allow employees to use their personal vehicles for work.

Who needs HNOA insurance?

Any business that uses vehicles they don't own for work purposes needs HNOA insurance. This includes businesses of all sizes, from small businesses with a single employee using their personal car to large companies with complex fleet management needs.