Hired and Non-Owned Auto Coverage And Its Benefits

Hired and Non-Owned Auto Coverage And Its Benefits

Are you looking for a comprehensive guide on Hired and non-owned Auto Insurance coverage? We have got you covered. Many small businesses rely on vehicles for their day-to-day operations. However, not every company has its fleet of vehicles. In the event of an accident, having the correct insurance coverage will safeguard your company’s finances.

Every day, a lot of companies use cars that they don’t own. All cars, whether owned by the company or rented, fall under this category. Many business owners are unaware that their company assets are at risk due to the typical exposure to automotive loss that comes with using these vehicles. 

If you or one of your employees sustains injuries in an incident like this, did you know that your company might be held vicariously liable? Your company could be putting itself in danger if employees use their own or rented cars for company activity. We’ll go over the dangers and Hired and non-owned Auto Insurance insurance plans that are out there. Here is the information you require regarding these dangers, as well as steps you can take to safeguard your staff and business.

What is Hired and Non-Owned Auto Coverage?

Hired & Non-Owned Auto Insurance is a type of insurance that protects your company if an employee gets into an accident while driving a hired or non-owned car for work. Commercial auto liability is the broadest category into which it essentially falls. In the event of an accident, this coverage can assist with the payment of damages, medical expenses, and legal fees.

Any car that your company has borrowed, rented, or leased for work-related reasons should have Hired Auto Coverage. Vehicles that are not legally owned by your company but are used for company business, such as an employee’s vehicle, are covered under Non-Owned Auto Coverage.

What is Hired Auto?

Vehicles that your company uses for business purposes are known as hired automobiles. These vehicles might be rented, leased, borrowed, or hired out. A rented car is not one that you lease, rent, or borrow from a family member, friend, partner, limited liability company member, or employee.

Hired & Non-Owned Auto Insurance can assist in defraying legal fees if a business is sued over an accident involving a rented vehicle.

What is a Non-Owned Auto?

Workers’ vehicles utilized for work purposes are considered non-owned autos. Claims involving vehicles that are not owned often occur in the following situations:

  • An administrative assistant may use their car to do weekly business tasks like dropping off mail or visiting the bank
  • Workers in customer service or sales are allowed to use their vehicles instead of the company’s

When an employee in any of the aforementioned situations is involved in an accident and is determined to have been negligent, Hired & Non-Owned Auto Insurance coverage would come into play. While the specifics may differ from one state to the next, in most cases, an employer can be held liable for an employee’s negligent injuries sustained while on the job.

What Does Hired and Non-Owned Auto Cover?

You might think that your car insurance covers everything right now. That is not the case, regrettably. Lawsuits that involve commercial use are not covered by personal auto coverage.

When an accident occurs on the job, Hired & Non-Owned Auto Insurance coverage can assist in paying for things like:

Damage to property

A moving van is hired by your company to transfer supplies to the new workplace. It would pay to fix or replace another person’s car if an employee operating the moving van were to cause an accident and damage it.

Physical harm

Your worker uses their vehicle to go to meet lunch. If they were to cause an accident involving another car, your Hired & Non-Owned Auto Insurance policy may pay for the other driver’s medical expenses and rehabilitation.

Defending and investigating claims

On a business trip, you rent an automobile and accidentally total another vehicle. Legal representation can be arranged by HNO insurance coverage if the other driver decides to sue you.

Your hired and non-owned auto insurance would shield you from the financial fallout of a third-party liability lawsuit if you are sued for accident-related injuries or property damage. But, your Hired & Non-Owned Auto Insurance coverage won’t pay to fix your cars if they are damaged, and it won’t pay to fix your goods if they get damaged while in transit. Commercial auto insurance is required for certain coverages. 

How Can Hired and Non-Owned Auto Coverage Benefit Your Business?

Your company may enjoy the rewards of Hired & Non-Owned Auto Insurance in multiple ways:

Safeguarding Your Company’s Funds

Your company can lessen its financial risk in the event of an accident involving a hired or non-owned vehicle by purchasing HNO insurance coverage. If such catastrophes occur, this can assist in shielding your business from expensive litigation and settlements.

Minimizing Legal Risks for Your Company

The legal requirement for Hired & Non-Owned Auto Insurance might vary by state and by industry. Your company can better assure compliance with insurance regulations by collaborating with a seasoned insurance agent. In addition to safeguarding your company license, this can avert consequences for noncompliance such as fines.

Addressing Legal Requirements 

State and industry-specific laws governing Hired & Non-Owned Auto Insurance coverage may differ. Working with an experienced insurance agency can help your business ensure that insurance rules are followed more closely. This can prevent penalties for noncompliance in addition to protecting your firm license.

Increasing Worker Satisfaction and Retention

You provide Hired & Non-Owned Auto Insurance to demonstrate your concern for the security of your workers. This can lead to an increase in worker satisfaction and loyalty, which in turn reduces the expenses associated with attrition and hiring.

Increasing the Credibility of Your Company

Companies who obtain the right insurance coverage demonstrate their competence and responsibility and acknowledge the possibility of mishaps. This increased degree of confidence with customers, suppliers, and partners could lead to more business opportunities and long-lasting collaborations.

What Isn’t Covered By Hired and Non-Owned Auto Insurance?

For accidents where one party is at fault, Hired & Non-Owned Auto Insurance solely offers third-party coverage. That leaves you and your employees uninsured in the event of an accident or damage to company property. It is necessary to acquire additional types of auto insurance to safeguard yourself from these kinds of damages. 

Bodily injuries to you and your employees

No matter how unintentional the accident may have been, Hired & Non-Owned Auto Insurance will not cover any medical bills or treatment costs you or your employees may have. Personal injury protection (PIP) or medical payments (MedPay) coverage is required for coverage. In no-fault states, personal injury protection insurance is required.

Damage to the vehicle

Vehicle owners typically acquire comprehensive and collision insurance plans to cover damages to their vehicles. “Full coverage” refers to this plus liability coverage for your vehicle. You can only benefit from this kind of insurance if you are the legal owner of the car. Fortunately, rental cars might be covered by your commercial auto insurance policy. 

Hit-and-run accidents

Insurance for business vehicles typically includes coverage for hit-and-run accidents. Uninsured motorist coverage, which is mandated in certain states, usually provides coverage for private vehicles.

Stolen items from the hired vehicle

Even if the stolen goods are in a vehicle that is not your own, your commercial property insurance should pay for their replacement cost. But there are insurance that won’t pay out for employee theft. To cover this, you might want to look into getting theft insurance as an additional rider for your business policy.

General wear and tear

Mechanical failures due to regular wear and tear are not covered by a Hired & Non-Owned Auto Insurance policy. For this one, you might have to have your insurance.

Is hired and non-owned auto insurance worth it?

While it is possible to expand your commercial auto insurance to include rental cars, it will not cover workers’ vehicles used for company business. Hence, for more comprehensive protection, it is wise to have Hired & Non-Owned Auto Insurance coverage in addition to your commercial auto insurance policy.

Consider purchasing hired and non-owned auto coverage if your small business engages in the following activities:

  • Regularly makes use of rented cars for company trips and other business-related pursuits
  • Commercial vehicles are leased for long periods
  • Requests that employees use their vehicles for company operations

The minimal legal liability limitations in your jurisdiction are another critical factor to think about. While individual states do not mandate minimum or maximum coverage amounts for Hired & Non-Owned Auto Insurance plans, the following criteria might serve as a guide for determining an appropriate policy maximum.

Keep in mind that if your expenses end up costing more than your liability coverage allows, you will have to pay the difference. In a perfect world, you’d get more extensive coverage than what’s required by the state.

Small accidents may not cost much, but a single large one might utterly derail your company’s finances. Having adequate Hired & Non-Owned Auto Insurance coverage is important since even a small accident can result in a settlement of hundreds of thousands of dollars.

Is Hired & Non-Owned Insurance Mandatory by Texas Law?

State entities whose employees use their personal or rented automobiles for official business should consider obtaining Hired & Non-Owned Auto Insurance coverage, even though it is not required by Texas state law, according to the State Office of Risk Management. 

It is required by law in Texas that all drivers have liability insurance, regardless of whether they use their cars for work or play. If you drive your vehicle for business purposes, you need to have enough liability insurance to protect both you and your company from financial ruin in the case of an accident.


In conclusion, if your company uses rented or non-owned vehicles for work, it is crucial to get Hired & Non-Owned Auto Insurance coverage to avoid financial ruin in the case of an accident. You may lessen your financial risk and liability by collaborating with a seasoned insurance agent to choose the right coverage and limits for your business. Businesses that often rent or lease automobiles, or allow workers to use their vehicles for work errands, are suitable candidates for Hired & Non-Owned Auto Insurance coverage. Insurigo Inc. is a prominent insurance provider in Texas that offers unmatched insurance solutions specifically tailored to meet your business needs. Feel free to contact us so that we may assist you with proper insurance coverage.


Do I still need Hired & Non-Owned Auto Insurance if my business policy covers my vehicle?

It is still required, yes. Hired & Non-Owned Auto Insurance eliminates the liability and physical damage risks connected with vehicles your business leases or borrows, in contrast to commercial auto insurance, which covers vehicles owned by your firm. It offers a thorough safeguard for these cars that are not owned while they are used for commercial purposes.

In comparison to a personal auto insurance policy, how does Hired & Non-Owned Auto Insurance work?

Cars used for commercial reasons are covered by Hired & Non-Owned Auto Insurance, in contrast to personal auto insurance, which mostly covers automobiles used for personal use. Because of the unique dangers of driving for work, it offers supplementary liability and physical damage insurance.

How does Hired & Non-Owned Auto Insurance complement my existing auto insurance?

When you use a car that is not your own for business purposes, Hired & Non-Owned Auto Insurance steps in to protect you, just like your personal auto insurance does for your owned vehicles. When your policy doesn’t cover everything, this one will.

Are there certain times when Hired & Non-Owned Auto Insurance is especially helpful?

For companies that often use rented or borrowed cars for things like client visits, deliveries, or special projects, Hired & Non-Owned Auto Insurance is a must-have. It protects you against possible financial setbacks caused by accidents or damage to vehicles that you do not own.

What are the key benefits of having & Non-Owned Auto Insurance for my business?

You may rest easy knowing that your business is protected financially in the event of an accident involving a hired vehicle, whether it’s an injury to a person or damage to property. This will make sure that your company’s operations can keep running properly even if employees use their own cars.