Shield Insurance Blog | Hired and Non-Owned Auto Liability Insurance | Business Insurance | Quoting Portal

What is hired and non-owned auto liability insurance?

Hired and non-owned auto liability insurance is a type of coverage that provides protection for businesses in the event of accidents or damages involving vehicles that are not owned by the company. This insurance is essential for businesses that rely on the use of vehicles, whether they are rented, leased, or owned by employees.

Hired auto coverage refers to insurance that protects a business when they rent or lease a vehicle for business purposes. This coverage typically includes liability insurance, which covers bodily injury and property damage that may occur as a result of an accident involving the rented or leased vehicle. It may also include coverage for physical damage to the rented or leased vehicle itself.

Non-owned auto liability coverage, on the other hand, provides protection for businesses when employees use their personal vehicles for business purposes. This coverage is important because personal auto insurance policies typically exclude coverage for accidents that occur while using a vehicle for business purposes. Non-owned auto liability insurance fills this gap and ensures that the business is protected in the event of an accident involving an employee’s personal vehicle.

It’s important to note that hired and non-owned auto liability insurance is not the same as commercial auto insurance. Commercial auto insurance is specifically designed for businesses that own vehicles and covers a wide range of risks associated with those vehicles, including liability, physical damage, and other types of coverage. Hired and non-owned auto liability insurance is meant to supplement commercial auto insurance or provide coverage in situations where a business does not own any vehicles.

So, why is hired and non-owned auto liability insurance important for businesses? Here are a few key reasons:

1. Protection against liability: Accidents happen, and if a business is found liable for bodily injury or property damage resulting from an accident involving a rented, leased, or employee-owned vehicle, the costs can be significant. Hired and non-owned auto liability insurance provides coverage for these potential liabilities, protecting the business from financial loss.

2. Peace of mind: Knowing that your business is protected in the event of an accident involving a hired or non-owned vehicle can provide peace of mind. It allows you to focus on running your business without worrying about the potential financial consequences of an accident.

3. Compliance with contracts and agreements: Many contracts and agreements require businesses to carry certain types and amounts of insurance, including hired and non-owned auto liability insurance. By having this coverage in place, businesses can ensure that they are in compliance with these requirements and avoid potential legal issues.

4. Coverage for employees’ personal vehicles: If your business relies on employees using their personal vehicles for business purposes, it’s important to have non-owned auto liability coverage. This coverage protects both the business and the employee in the event of an accident, ensuring that medical expenses and property damage are covered.

In conclusion, hired and non-owned auto liability insurance is a crucial type of coverage for businesses that use vehicles but do not own them. It provides protection against liability, offers peace of mind, ensures compliance with contracts, and covers employees’ personal vehicles. If your business falls into this category, it’s important to consider obtaining this insurance to protect your business and its assets.

Shield Insurance Agency represents over 40 insurance companies and can help you find the right hired and non-owned auto liability insurance policy for your business. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.