Hired and Non-Owned Auto Insurance
Your business may have auto liability exposure even if it does not own any vehicles. Employees may use personal cars for errands, sales visits, deliveries, bank runs, client meetings, or business travel. Your company may also rent, lease, or borrow vehicles for work.
Hired and Non-Owned Auto Insurance helps protect your business from liability claims involving vehicles your company does not own but uses for business purposes.
At Annagard Insurance Agency, we help businesses compare coverage options and build insurance programs that address owned, rented, borrowed, and employee-owned vehicle exposures.
What Is Hired and Non-Owned Auto Insurance?
Hired and Non-Owned Auto Insurance helps pay for covered liability claims involving:
Hired and Non-Owned Auto Insurance is important for businesses that use vehicles they do not own for work.
It works best when combined with Commercial Auto Insurance, General Liability, Workers’ Compensation Insurance, and Umbrella or Excess Liability Insurance.
For example:
What Does Hired and Non-Owned Auto Insurance Cover?
Hired Auto Coverage
If your business rents, leases, or borrows a vehicle and an accident occurs during business use, Hired and Non-Owned Auto Insurance may help protect your company from covered liability claims.
Examples include:
Rental cars used for business trips
Short-term van rentals for events
Borrowed vehicles used for company errands
Temporary vehicles used for deliveries
This coverage can be important for restaurants, caterers, contractors, offices, sales teams, consultants, nonprofits, delivery businesses, and companies that occasionally rent vehicles.
Non-Owned Auto Coverage
Non-owned auto exposure happens when employees use their personal vehicles for company business. Their personal auto policy may respond first, but your business can still be pulled into a claim.
Examples include:
- Employee errands
- Sales calls and client visits
- Food delivery, document delivery, or bank runs
If your company owns vehicles, you should also review Commercial Auto Insurance, which is designed for vehicles titled or registered to the business.
Borrowed Vehicle Exposure
Borrowed vehicle claims may arise when a vehicle not owned by the business is used for work, such as:
- A borrowed pickup truck for a job
- A volunteer’s vehicle used for an event
- A personal car used for business deliveries
- A temporary vehicle used for business errands
- A vehicle rented or borrowed for a company need
Cleanup, Disposal, and Restocking
Hired and Non-Owned Auto Insurance is designed mainly for liability protection when a non-owned vehicle is used for business purposes.
Depending on the policy, Hired and Non-Owned Auto Insurance may help pay for:
- Bodily injury liability claims
- Property damage liability claims
- Legal defense costs
- Settlements or judgments covered by the policy
This coverage generally does not replace the employee’s personal auto insurance or provide physical damage coverage for every rented or borrowed vehicle unless specifically added.
Business Income Support
Hired and Non-Owned Auto Insurance does not replace Commercial Auto Insurance for vehicles your business owns.
Pairing Hired and Non-Owned Auto Insurance with Commercial Auto, Workers’ Compensation, General Liability, Cyber Liability, and Umbrella or Excess Liability Insurance can help create a stronger business insurance program.
What Isn’t Covered?
Hired and Non-Owned Auto Insurance is important, but it does not cover every business risk.
Separate policies may be needed for:
Who Needs Hired and Non-Owned Auto Insurance?
Businesses that rent vehicles or have employees use personal vehicles for work should consider Hired and Non-Owned Auto Insurance, including:
- Restaurants and food delivery businesses
- Caterers and event companies
- Contractors and service businesses
- Sales teams
- Consultants and professional offices
- Nonprofits and charities
- Real estate agencies
- Healthcare and home service businesses
- Retail stores
- Hospitality businesses
- Florists and delivery businesses
- Pharmacies and medical offices
- Technology companies
- Schools, churches, and community organizations
Any business that asks employees, owners, volunteers, or contractors to drive personal, rented, or borrowed vehicles for work should review Hired and Non-Owned Auto Insurance.
Build a Complete Business Insurance Package
Hired and Non-Owned Auto Insurance is often just one part of a comprehensive business insurance plan.
Depending on your business, we may also recommend:
Protect Your Property
Commercial Property Insurance helps protect your building, inventory, furniture, equipment, and business contents from covered property losses.
Keep Income Flowing
If a covered property loss forces your business to temporarily close, Business Income Insurance can help replace lost revenue and cover ongoing expenses.
Protect Critical Equipment
Businesses that rely on HVAC, refrigeration, kitchen equipment, electrical panels, or production equipment should consider Equipment Breakdown Insurance.
Protect Refrigerated Inventory
Food Spoilage Coverage helps restaurants, grocery stores, convenience stores, florists, pharmacies, and food businesses protect perishable inventory after covered spoilage events.
Protect Your Employees
If you have employees, Workers’ Compensation Insurance may be required by law and helps cover workplace injuries and lost wages.
Protect Your Vehicles
Businesses that own vehicles need Commercial Auto Insurance, while companies whose employees drive personal, rented, or borrowed vehicles for work should also consider Hired and Non-Owned Auto Insurance.
Protect Customer Data
Businesses that collect customer information should consider Cyber Liability Insurance to help cover data breaches, ransomware attacks, and cybercrime.
Increase Your Liability Limits
If your business faces significant liability exposure, Umbrella or Excess Liability Insurance can provide additional protection above certain underlying liability policies.
Related Business Insurance Coverages
Hired and Non-Owned Auto Insurance works best as part of a complete business insurance program. Review Commercial Auto Insurance for company-owned vehicles, Commercial Property Insurance for buildings and contents, Business Income Insurance for lost revenue after covered property losses, Equipment Breakdown Insurance for machinery and system failures, Food Spoilage Coverage for refrigerated inventory, Workers’ Compensation Insurance for employee injuries, Liquor Liability Insurance for alcohol-related claims, Cyber Liability Insurance for data risks, and Umbrella or Excess Liability Insurance for higher liability limits.
Frequently Asked Questions
Is Hired and Non-Owned Auto Insurance required?
It may be required by contracts, clients, vendors, or risk management rules if employees use personal, rented, or borrowed vehicles for business.
How much Hired and Non-Owned Auto Insurance do I need?
Coverage depends on how often vehicles are rented or used, who drives, business activities, contracts, and your overall auto liability exposure.
Does Hired and Non-Owned Auto Insurance cover my building?
No. Buildings and business contents are generally protected by Commercial Property Insurance.
Does Hired and Non-Owned Auto Insurance cover employee injuries?
Employee injuries are generally covered by Workers’ Compensation Insurance, not Hired and Non-Owned Auto Insurance.
Does Hired and Non-Owned Auto Insurance cover delivery vehicles?
It may help with liability for employee-owned, rented, or borrowed delivery vehicles, but company-owned vehicles generally require Commercial Auto Insurance.
Can I bundle Hired and Non-Owned Auto Insurance?
Yes. It can often be added to a Commercial Auto policy, General Liability package, Business Owner’s Policy, or broader business insurance program.
Why Choose Annagard Insurance Agency?
Every business has different risks. That’s why we don’t believe in one-size-fits-all insurance.
At Annagard Insurance Agency, we work with multiple top-rated insurance carriers to build customized insurance solutions that fit your business today while preparing for tomorrow’s growth.
Whether you’re opening your first business or reviewing your current insurance program, our experienced team can help you compare options and find the right protection.
Get a Free Hired and Non-Owned Auto Insurance Quote
Protect your business before a rented, borrowed, or employee-owned vehicle accident turns into a costly liability claim.
Contact Annagard Insurance Agency today to receive a customized Hired and Non-Owned Auto Insurance quote and learn how this coverage can work with Commercial Auto Insurance, Workers’ Compensation Insurance, Commercial Property Insurance, and Umbrella or Excess Liability Insurance.