Hired and Non-Owned Auto Coverage

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Written by: Chloe Silverman, Senior Writer at The Hartford
Reviewed by: Gene Marks, CPA, Author & Small Business Owner
 

What Is Hired and Non-Owned Auto?

hired and non-owned autoMany business owners use vehicles for work that they don’t own. Whether you’re renting, leasing or borrowing a car for business purposes, you’ll face risks on the road. That’s where hired and non-owned auto coverage (HNOA) can help.
 
As a type of small business insurance, HNOA can help cover property damage or bodily injury that your business caused to someone else in an accident. HNOA includes two different types of coverage.
 
  • Hired coverage means your business has coverage when you or employees drive a rented, leased or borrowed car for business.
  • Non-owned auto applies to employees using their own cars for business. It provides extra coverage over the employee’s personal auto coverage for bodily injury and property damage liability.

What Is Considered a Hired Auto?

The term “hired auto” refers to any vehicles that you hire, rent or borrow. To get coverage for these, you’ll need hired auto insurance, which applies to cars and trucks. So, if you or your employee are in a car accident while driving a hired, rented or borrowed vehicle for work, hired auto insurance can help pay for your liability costs.
 

What Does Non-Owned Auto Coverage Cover?

Non-owned vehicles are personal cars that your business doesn’t own, lease or hire. Non-owned auto coverage helps provide liability protection if a vehicle you haven’t leased, hired or rented is driven for your business and is in an accident.
 
For example, if your employee drives a personal vehicle for work and rear ends another car, your non-owned auto coverage can help pay for damages to the other person’s vehicle if the costs exceed the employee’s personal auto coverage limits. And, if they sue your business for medical costs later, this coverage can also help your company pay for those expenses.
 

Examples of Hired and Non-Owned Auto Coverage

Hired and non-owned auto insurance helps cover:
 
  • Physical damage to another person’s car
  • Bodily injuries and medical expenses if someone else gets hurt in an accident
  • Legal expenses if your business gets sued for negligence
Be aware that hired and non-owned auto insurance is a type of liability insurance for small businesses, but it doesn’t provide coverage for the policyholder.  This means it won’t help with:
 
  • Property damage to your business’ hired or non-owned vehicle.
  • Medical bills if you or your employee get hurt in an accident while using rented or personal vehicles.
  • Liability coverage, damages or bodily injury from an accident while you or your employee drive for personal reasons that are not related to your business.

Do You Need Hired and Non-Owned Auto Coverage?

If your business rents or borrows vehicles to do work or if your employees use their personal vehicles on business, getting hired and non-owned auto coverage is important. It can help pay for any property damage that rented vehicles cause while being used for your business. It also covers vehicles used for your business if they cause bodily injury to another driver in a car accident. A business without insurance coverage may need to pay out of pocket for damages.
 

Common Questions About Hired and Non-Owned Auto

What Is the Difference Between Hired and Non-Owned Auto?

Commercial auto insurance helps protect the company vehicles that your business owns. This is different from hired and non-owned auto coverage which is meant to protect you from damages caused while operating a rented or borrowed vehicle.
 

Can a Business Get By With Personal Auto Insurance?

hired and non owned auto coverageYour personal auto insurance policy likely doesn’t provide coverage to your business’ rented vehicles. It also won’t help cover third-party claims if you get into an accident while driving your own vehicle for business.
 
You can think of a personal auto insurance policy as working together with hired and non-owned coverage. If you get into an accident while driving for work, HNOA helps cover the damage to another person’s property or someone else’s medical bills if it exceeds the limits in a personal auto policy. If you’re hurt or your own car gets damaged, then your personal auto policy can help pay for the repairs.
 

How Can I Get Hired and Non-Owned Auto Coverage?

hnoa coverageWe offer commercial auto insurance and hired and non-owned auto coverage that can help protect your business. In fact, we’ve helped over one million small business owners get the coverage they need. Whether you’re looking for the right type of business insurance or need help filing a claim, we’re here for you.
 
Get a small business insurance quote today and learn how we can help protect you and your employees on the road.
 
 
Last Updated: September 21, 2023
 
Additional disclosures below.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. listed in the Legal Notice.
 
The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartford’s Legal Notice.
 
* Customer reviews are collected and tabulated by The Hartford and not representative of all customers.
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