Many business owners are surprised to learn that their business can be held liable for a car accident even if the company does not own a single vehicle. This is one of the most common and costly coverage gaps businesses face and it is exactly what hired and non-owned auto insurance is designed to fix.
What is Hired Auto Coverage?
Hired auto coverage protects your business when employees rent or borrow vehicles for business purposes. If an employee rents a car for a business trip and gets into an accident, hired auto coverage steps in to cover the liability your business faces as a result.
What is Non-Owned Auto Coverage?
Non-owned auto coverage protects your business when employees use their personal vehicles for work related purposes. This is more common than most business owners realize. Any time an employee drives their own car to make a delivery, visit a client, pick up supplies, or travel between job sites, your business has exposure if an accident occurs.
Personal auto insurance follows the driver not the employer. That means if the accident exceeds the employee's personal policy limits, your business can be sued for the difference. Non-owned auto coverage fills that gap.
Which Businesses Need This Coverage?
Almost any business where employees drive for work purposes should consider hired and non-owned auto coverage. This includes real estate companies where agents drive to showings, healthcare businesses where staff visit patients, construction companies where crews travel between job sites, restaurants and hospitality businesses where staff make deliveries, and any business that sends employees to run errands or meet clients.
How Much Does It Cost?
Hired and non-owned auto coverage is typically one of the most affordable commercial insurance coverages available. For most businesses it can be added to an existing commercial package policy at a minimal additional cost. The risk it protects against far outweighs the premium in almost every case.
AOR Insurance is an independent broker and division of Sihle Insurance Group working with A+ rated carriers in all 50 states. Our proven process reviews your entire coverage program to identify gaps like hired and non-owned auto exposure that most businesses never knew they had. Get a free comprehensive risk profile at aorinsurance.com.