What is hired and non-owned auto coverage?

Hired and non-owned auto coverage is a type of insurance that provides protection for businesses in situations where they or their employees use vehicles not owned by the company for business purposes. This coverage serves as a supplement to a commercial auto insurance policy and can be crucial for businesses that occasionally rent vehicles or have employees who use their personal cars for work-related tasks.

Here's a brief summary of hired and non-owned auto coverage:

Hired Auto Coverage:

This part of the policy covers vehicles that your business rents or leases for temporary use. It provides liability protection if an accident occurs while the rented vehicle is being used for business purposes. Hired auto coverage is valuable for businesses that frequently rent cars or trucks for specific projects or employee travel.

Non-Owned Auto Coverage:

Non-owned auto coverage extends protection when your employees use their personal vehicles for business-related activities. If an accident occurs while an employee is using their car for work, this coverage can help cover liability costs.

Both aspects of Hired and Non-Owned Auto coverage are designed to fill potential gaps in your commercial auto insurance policy and help safeguard your business against liability claims arising from accidents involving vehicles not owned by the company.