What is hired & non-owned liability coverage?
Hired and non-owned auto liability coverage is the coverage to protect you in the event of bodily injury or property damage caused by vehicles that you hire like a rental vehicle and also non-owned vehicles like your employee’s vehicles.
All businesses should carry hired & non-owned liability coverage to help protect their business in the event of an accident.
The frequency of these claims can vary depending on the type of business you have, the number of employees you have, and how you go about your day-to-day business. But every business owner should carry this coverage to protect them against that “what if” scenario.
An example of this is you send an employee to run an errand for you, pick up lunch for the office, or make a delivery. While they are out, they get in an accident that causes major property damage or injuries, this could leave your business at risk.
Hired & Non-owned Liability Coverage will protect the business from any lawsuits that you are brought in on.
How do I buy hired & non-owned liability coverage
This auto liability protection can be purchased in 2 ways.
If you have a business auto policy, this coverage can be added or extended as an endorsement or it might automatically be included depending on the type of business auto coverage you have.
Most businesses do not own commercial vehicles. Since they can not add it to a business auto they can either purchase a hired & non-owned auto policy separately or they can extend this coverage on your general liability policy.
No matter which way, business owners should be able to get the proper coverage to protect their business.
Hired & Non-owned Physical Damage Coverage
While we talked about liability protection and focused mainly on the employee’s vehicles above, there is also a coverage that protects against the damage you cause to a hired vehicle, like a rental car.
You may also be able to add hired & non-owned physical damage coverage that will give Comprehensive and Collision coverage protection as well.
What should you do next?
Insurance is confusing. Having a trusted insurance advisor to help you as a business navigate through these things is a must.
If you don’t have a relationship with an agent or want a review of your insurance then click the button below to schedule a review with one of our trusted insurance advisors.
