Hired and Non Owned vs. Commercial Auto Insurance

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What is Hired and Non-Owned Auto Insurance?

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.

When is Commercial Auto Insurance Necessary?

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:

  • The physical damage caused by accident to autos owned by your business, or owned by you and leased to your company.
  • Bodily injury and property damage to others.
  • Medical payments for injuries that happen in an auto accident.
  • Uninsured and underinsured motorists.

When to Use Hired and Non-Owned Auto?

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:

  • Rented a vehicle to transport something?
  • Rented a van to take a team building trip with your employees?
  • Sent an employee to deposit money in the bank using their own car?
  • Asked an employee to pick up lunch for the office in their own car?
  • Sent your employees to a seminar or business meeting in their own car?

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.

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How to Reduce Risks?

There are quite a few ways, as always, to reduce your risks to your business when it comes to auto liability.

  • Do not send employees on errands in their own vehicles while on company time.
  • If you do need your employees to run errands, make sure to run their driving record and ensure that they have current Commercial Auto insurance covering themselves and their vehicle that they will be driving.
  • Also, try to steer clear of youthful (under 21-25 depending on the insurance company) drivers.
  • If you have to rent a vehicle, purchase the rental car companies insurance options.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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