☰ ˟
Spanish Call Us
Logo
Spanish
  • Home
  • Get A Quote
  • Policy Service
  • What We Offer
    • Automobile
    • Business & Commercial
    • Flood
    • Homeowners
    • Limousine
    • Motorcycle
    • Recreational Vehicle
    • Renters
    • SR-22
    • Watercraft & Boat
  • Resources
    • View Our Blog
    • Review Us
    • Insurance Glossary
  • Payment/Claims
  • About Us
    • About Guardian Insurance
    • Our Location(s)
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact Us
Get A Quote Auto
Get A Quote Home
Get A Quote Commercial Auto
Get A Quote Business & Commercial
We partner with Endurance Life Insurance to offer you the best coverage. Click below to visit their site. Life
Home > Blog > Understanding Hired/Non-Owned Commercial Auto Insurance
THURSDAY, NOVEMBER 4, 2021

Understanding Hired/Non-Owned Commercial Auto Insurance

Business owners who allow their employees to drive as part of their assigned duties assume a degree of liability for the employees’ actions behind the wheel. Therefore, they need commercial auto insurance. Still, if an employee uses their personal car for work, then that does not mean that your liabilities go away. The employee still drives under the business’s authority at these times. So, if you are trying to insure this employee, then you will likely need to ensure your policy contains hired/non-owned auto insurance. Here’s how this coverage works and how it can benefit your business.  

Personal Vehicles Used for Business  white commercial vans
Many business owners use their personal cars in the regular course of their duties. Others allow their employees to drive their own cars in the course of business.  

For example, a sales rep might travel in their own car frequently to visit their clients. Realtors might use their personal cars to drive between properties. Or, you might hire someone to work as a delivery driver for your local pharmacy. Today, vehicles have become a regular feature of many businesses’ operational strategies.  

When someone drives on behalf of a business, they expose the business to liability risks. That’s because if this person has an accident, then the business might have to help pick up the pieces. This is especially true when a business driver is at fault for an accident that harms others. As a result, the third party might try to sue the business for their injuries or property damage costs. In these cases, the business’s commercial auto liability insurance can help compensate the affected driver for their damage costs.  

Because the driver was operating on behalf of the business at the time of the accident, then the business might have a responsibility to step in with their commercial auto insurance. So, the business owner will need to make sure their commercial auto policy covers someone driving a personal car. In this case, you might need to include hired/non-owned liability coverage on your policy.  

Understanding Hired/Non-Owned Coverage  
Hired & non-owned auto liability insurance is part of many commercial auto insurance policies. As its name suggests, it applies to vehicles that operate for a business, but that the business does not own. Under your policy:  

Non-owned insurance applies to vehicles like employee-owned cars when used for business.  

Hired auto coverage applies to vehicles the business hires. Rental vehicles usually fall under this coverage. Drivers whose services you hire for certain purposes also fall under this coverage.  

Sometimes, you can buy hired & non-owned vehicle coverage separately. However, it’s often simpler to buy them together. When setting up a commercial auto policy, you might need to ask your agent to add it onto your coverage. It might not automatically come with the policy. Also, sometimes, you can buy coverage as a standalone policy. Or, you might be able to add it to your general liability insurance policy instead.   

Keep in mind, hired/non-owned auto coverage does not apply to physical damage that the vehicle sustains in a wreck. Instead, it only applies to liability costs caused to other people who are not employed by your business. Therefore, it won’t pay your own driver for their vehicle’s damage.  

Also, just because your business has a non-owned liability policy, that doesn’t mean your employee driver still doesn’t need personal auto insurance. A hired/non-owned policy will not apply when the employee commutes to work or runs a personal errand during work hours. Therefore, they will need to maintain personal auto coverage on their own.  

To ensure that your employees have the appropriate coverage when using their personal vehicles for work, ask your agent to add them as a named insured party on your commercial auto coverage. You will ensure that hired/non-owned liability coverage always extends to them. 
Posted 11:18 AM

Tags: commercial auto insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011

  • insurance(45)
  • coverage(28)
  • business insurance(25)
  • georgia(25)
  • guardian insurance(22)
  • auto insurance(18)
  • lawrenceville(12)
  • liability(8)
  • atlanta(8)
  • protection(8)
  • general liability(8)
  • commercial auto insurance(8)
  • business(8)
  • renters insurance(8)
  • georgia insurance(7)
  • home insurance(7)
  • motorcycle insurance(7)
  • tips(7)
  • atlanta auto insurance(5)
  • lawrenceville ga insurance(5)
  • flood insurance(5)
  • workers compensation(5)
  • auto(5)
  • car insurance(5)
  • business owners policy(4)
  • car(4)
  • general liability insurance(4)
  • builders risk(4)
  • commercial(4)
  • rv insurance(3)
  • auto insurance lawrenceville(3)
  • liquor liability insurance(3)
  • lawrenceville car insurance(3)
  • bop(3)
  • requirements(3)
  • sr-22 insurance(3)
  • lawrenceville auto insurance(3)
  • options(3)
  • recreational vehicle insurance(2)
  • rates(2)
  • flooding(2)
  • unmarried couples(2)
  • premiums(2)
  • commercial insurance(2)
  • maintenance(2)
  • customer service(2)
  • owners(2)
  • benefits(2)
  • roswell auto insurance(2)
  • small business insurance(2)

View Mobile Version
Guardian Insurance

888 Pleasant Hill Rd NW, Suite E
Lilburn, GA 30047

4450 Nelson Brogdon Blvd. A-1
Buford, GA 30518

1085 Holcomb Bridge Rd. Ste. 190
Roswell, GA 30076

We at Guardian Insurance have been offering our customers tailored polices with the best coverage at the most affordable price. We service several areas such as the the Metro Atlanta area of Georgia.

Icon Icon Icon Icon Icon
We're here for you
Home Page About Us Contact Us Our Blog Join Our Newsletter Refer A Friend
Quick Help Links
Quote Forms Make a Payment Insurance Glossary

© Copyright. All rights reserved. Powered by Insurance Website Builder.

Facebook Twitter LinkedIn Instagram