Hired and Non-Owned Auto Coverage: Business Owner's Guide

What is hired and non owned auto coverage and why would a business owner need it? Get a free quote from Insurist to determine which works best for you.
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Written by Brian Greenberg

Last updated: July 19th, 2022

Reviewed by Grant Desselle

If you own a business, you likely understand the importance of insurance. Insurance protects your business from financial losses that can occur as a result of accidents, property damage, or other unforeseen events.

What Is Hired and Non-Owned Auto Coverage?

Hired and non-owned auto coverage (HNOA) is a type of insurance that can  help protect your business from liability in the event that an employee or contractor damages a vehicle while on the job.

HNOA insurance covers damage to vehicles that your business uses for work related activities but doesn’t own.

If you’re considering HNOA coverage for your business, it’s important to work with a reputable insurance provider to determine the best solution for your needs. An agent can help you assess your risks and choose a policy that provides the right level of protection for your business.

Examples of vehicles that qualify under HNOA insurance are:

  • Rental cars used for business purposes
  • Company-owned vehicles leased to employees
  • Vehicles owned by contractors or other third parties working on behalf of your business

The cost of HNOA insurance will vary based on several factors, including the size and scope of your business, the type of vehicles you use, and the amount of coverage you need. You may request a free estimate to have a general idea of how much you can expect to pay, given your situation and unique needs.

HNOA vs Commercial Auto Insurance

HNOA insurance is similar to commercial auto insurance, but there are some key distinctions between the two types of coverage.

Commercial auto insurance typically covers vehicles owned or leased by a business. In contrast, HNOA insurance covers hired or non-owned vehicles.

Another key difference is that commercial auto insurance typically provides liability coverage for damage caused by the insured vehicle. HNOA insurance, on the other hand, provides liability coverage for damage caused by any vehicle used in connection with your business.

Finally, it’s important to note that HNOA insurance is typically an endorsement to a commercial general liability policy, while commercial auto insurance is a standalone policy.

What Does HNOA Insurance Cover?

HNOA insurance can help protect your business from liability in the event that an employee or contractor damages a vehicle while on the job. The type of coverage available under an HNOA policy will vary but typically includes:

  • Bodily injury liability: This covers medical expenses and lost wages for people injured in an accident caused by a hired or non-owned vehicle.
  • Property damage liability: This covers repairs for damage to property caused by a hired or non-owned vehicle.
  • Collision coverage: This covers repairs for damage to a hired or non-owned vehicle caused by an accident.
  • Comprehensive coverage: This covers repairs for damage to a hired or non-owned vehicle caused by events such as theft, vandalism, or weather damage.
  • Uninsured/underinsured motorist coverage: This covers medical expenses and lost wages for people injured in an accident caused by an uninsured or underinsured driver.
  • Medical payments coverage: This covers medical expenses for people injured in an accident, regardless of fault.
  • Personal injury protection: This covers medical expenses and lost wages for people injured in an accident, regardless of fault.

Why Do You Need Hired and Non-Owned Auto Coverage?

As a business owner, you’re responsible for the actions of your employees. This means that if an employee damages a vehicle while on the job, your business could be held liable.

HNOA insurance can help protect your business from financial losses that may occur as a result of an employee-related accident. In addition, HNOA coverage can also help pay for legal expenses if your business is sued as a result of an accident.

When Do You Need Hired and Non-Owned Auto Coverage?

HNOA insurance is not required by law, but it’s important coverage to consider if your business  has employees or contractors that use vehicles that the business doesn’t own.

Hired and Non-Owned Auto Coverage: Get A Free Quote

HNOA insurance covers damage to vehicles that your business uses for work related activities but doesn’t own. HNOA insurance helps protect your business from liability in the event that an employee or contractor damages a vehicle while on the job. The cost of coverage will vary based on factors such as the size and scope of your business, the type of vehicles you use, and the amount of coverage you need.

If you’re a business owner who uses vehicles in connection with your business, speak with an experienced insurance agent to assess your risks and determine if HNOA insurance is right for you. You can also request a free quote by answering a few questions about your business to get an idea of how much it may cost.

Curious about auto insurance for rented or borrowed vehicles? Get free quotes and compare rates of different HNOA insurance providers in your area through Insurist.

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