Insurance terminology can get confusing, especially for a small business owner that is already stressed about keeping profits up and customers happy. Commercial Auto insurance is no exception. Do you own or operate any vehicles within the course of your business? What about your employees? Have you heard of Hired and Non-Owned auto insurance? If so, you may be wondering what exactly it means.
Hired and Non-Owned Auto insurance coverage is either a rider on your General Liability insurance or separate policy, that covers your small business against liability claims that occur with your employees' car or a rented vehicle. So, even if your business itself does not own any autos, you still probably need this critical coverage.
If your business owns any vehicles, or you use a personal vehicle for business, then you will need Commercial Auto insurance. The Commercial Auto insurance policy was developed to cover vehicles and auto liability for business owners who use vehicles within their daily operations. It includes:
If your business does not own any vehicles and you do not use any of your personal vehicles for business, you probably do not need a Commercial Auto insurance policy. However, you should consider Hired and Non-Owned Auto insurance coverage. Why? Have you ever:
If you answered yes to any of these questions, and we would be surprised if you didn't, then you should have this essential coverage. Protect your small business by purchasing Hired and Non-Owned insurance coverage. Remember, Hired and Non-Owned Auto insurance is protecting your business, not your employees. If they got into an accident while running an errand for your business, their policy would have to respond to cover them.
There are quite a few ways, as always, to reduce your risks to your business when it comes to auto liability.
Often, a Personal Auto insurance policy will specifically exclude autos being used in the course of business. So, a Personal Auto insurance policy would definitely not be sufficient to cover any type of exposure when it comes to your business. Protect your business, and ultimately yourself, by purchasing the proper Auto insurance.
As a small business owner, it is hard to make these decisions on your own. Work with a licensed insurance agent to determine if you do need Commercial Auto insurance, or if you can get by with Hired and Non-Owned Auto coverage. Either way, reduce your risks by following the steps outlined above if you do have to use your employees for errands or rent any type of auto.