Hired & Non-Owned Auto Insurance

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance covers liability when your employees drive vehicles that your business doesn't own. This includes personal cars used for business errands, rental vehicles for work trips, and borrowed vehicles for company purposes. Hatoway Insurance's agents help businesses understand when this coverage is necessary and how it works alongside your existing commercial policies.

This coverage fills a critical gap in your business protection. Your commercial auto policy covers vehicles your business owns or leases. But what happens when an employee drives their own car to make a client visit or picks up supplies in a rental truck? Hired and non-owned auto insurance protects your business from liability claims that arise from these situations.

The "hired" portion covers vehicles your business rents or borrows, like rental cars for business travel or leased equipment trucks. The "non-owned" portion covers employee personal vehicles used for business purposes. Both components protect your business from lawsuits and liability claims when accidents occur in vehicles you don't own.

Most businesses add this coverage to their general liability or commercial auto policy as an endorsement. It's typically affordable and provides essential protection for companies whose employees drive for work but don't need full commercial auto coverage for company-owned vehicles.

What Does Hired & Non-Owned Auto Coverage Cover?

Hired and non-owned auto insurance covers bodily injury and property damage liability when employees drive vehicles not owned by your business. Understanding what this policy covers helps you determine if it's right for your company.

Core Coverage Components

Your hired and non-owned auto policy covers:

• Bodily injury liability when an employee causes an accident in their personal vehicle while on company business
• Property damage liability for damage your employee causes to other vehicles or property
• Legal defense costs if your business is sued after an accident in a non-owned vehicle
• Settlement and judgment costs up to your policy limits
• Liability from rental vehicles used for business purposes
• Coverage when employees borrow vehicles for work-related tasks

Real-World Coverage Scenarios

This insurance protects you in situations like these: An employee drives to meet a client and causes an accident on the way. A team member picks up office supplies in their personal car and hits another vehicle. An employee rents a truck to transport equipment to a job site and damages property. A salesperson uses their own car for customer visits and injures someone in an accident.

The coverage steps in when the employee's personal auto insurance isn't enough to cover the damages. Since they were driving for business purposes, your company could be held liable. Hired and non-owned auto insurance protects your business assets from these claims.

What This Coverage Doesn't Include

You need to understand the limitations. This policy doesn't cover damage to the hired or non-owned vehicle itself. It doesn't cover injuries to your employee who was driving. It doesn't replace personal auto insurance for your employees. It doesn't cover vehicles your business owns or leases—that's what commercial auto insurance is for.

If you need more comprehensive protection, you may want to consider adding physical damage coverage for hired vehicles or ensuring your employees maintain adequate personal auto insurance limits. Your agent can help you identify gaps in coverage and recommend solutions.

How Much Does Hired & Non-Owned Auto Insurance Cost?

The cost of hired and non-owned auto coverage varies based on several factors specific to your business operations. Most companies find this coverage affordable compared to full commercial auto insurance, but your premium depends on your risk profile.

Primary Cost Factors

Insurance companies evaluate these factors when determining your rate: The number of employees who drive for business purposes affects your premium significantly. More drivers mean more exposure to risk. How often your employees drive for work matters. Occasional business use costs less than daily driving requirements. The types of vehicles typically used influences pricing. Light-duty passenger vehicles present different risks than large rental trucks.

Your industry and business operations play a role. A consulting firm where employees occasionally visit clients will pay less than a home services company with frequent driving. The coverage limits you select directly impact your cost. Higher liability limits provide more protection but increase your premium. Your claims history matters too—businesses with previous accidents may pay more.

Ways to Manage Your Premium

You can potentially lower your hired and non-owned auto insurance costs through several strategies. Bundle this coverage with your general liability or business owner's policy for multi-policy discounts. Implement a clear policy about employee driving, including driver qualification standards. Require employees to maintain adequate personal auto insurance limits. Consider higher deductibles if your business can handle more out-of-pocket costs.

Working with an independent agent gives you access to multiple carriers and pricing options. Some insurers specialize in certain industries or business sizes, which can lead to better rates. Getting personalized quotes from several companies helps you find competitive pricing without sacrificing the protection you need.

Don't make coverage decisions based solely on price. The cheapest policy might not provide adequate protection when you need it most. Focus on finding the right balance between comprehensive coverage and affordable premiums for your specific business situation.

Do I Need Hired & Non-Owned Auto Insurance?

Many business owners aren't sure if they need this coverage. The answer depends on whether your employees ever drive vehicles not owned by your company for work purposes.

Businesses That Need This Coverage

You should strongly consider hired and non-owned auto insurance if any of these apply to your business: Your employees use personal vehicles to run business errands or visit clients. You don't own company vehicles but your team members drive for work. Employees occasionally rent vehicles for business travel or equipment transport. Your staff picks up supplies, makes deliveries, or attends off-site meetings.

Service-based businesses often need this coverage. Consultants, real estate agents, home healthcare providers, and sales representatives typically drive personal vehicles for work. Even if driving isn't your primary business activity, occasional business use creates liability exposure.

Companies that rent vehicles for special projects need protection too. If you rent a truck to move equipment or a van for a company event, hired auto coverage protects you during that rental period.

When You Might Not Need It

This coverage may not be necessary if you own or lease vehicles for all business driving needs and have commercial auto insurance covering those vehicles. Your employees never drive personal vehicles for any business purpose. Your business operates entirely from one location with no need for employee travel.

However, even businesses with company vehicles might need hired and non-owned coverage for situations not covered by their commercial auto policy. Your insurance professional can review your specific operations and identify potential gaps.

State Requirements and Contractual Obligations

Some situations make this coverage practically mandatory rather than optional. Clients or general contractors may require you to carry hired and non-owned auto insurance before they'll work with you. Your business lease or professional licensing requirements might specify this coverage. State regulations for certain industries may mandate this protection.

Review your contracts and professional obligations to determine if this coverage is required for your business. Even when it's not mandatory, the affordable premium often makes it worthwhile protection against potentially expensive liability claims.

How to Get Hired & Non-Owned Auto Insurance in Indiana

Getting the right hired and non-owned auto coverage for your Indiana business starts with understanding your specific needs and working with an agent who knows your local market.

Indiana businesses benefit from competitive insurance markets in growing cities and established communities throughout the state. Your location, industry, and business size all influence your coverage options and rates. Working with a local independent agent gives you access to multiple carriers and helps you find the best combination of coverage and price.

Steps to Get Coverage

Start by documenting how your employees use vehicles for business. List who drives, how often they drive, and what types of vehicles they typically use. Include information about rental vehicle usage and business mileage. This information helps your agent provide accurate quotes.

Contact an independent insurance agent who understands commercial coverage. Explain your business operations and ask about adding hired and non-owned auto coverage to your existing business insurance. Many companies add this as an endorsement to their general liability policy, which is often more cost-effective than purchasing standalone coverage.

Compare quotes from multiple carriers. Different insurance companies price this coverage differently based on their appetite for your industry and risk profile. Your agent can present options from several insurers and explain the differences in coverage terms and exclusions.

Questions to Ask When Shopping for Coverage

Before you commit to a policy, ask these important questions: What are the liability limits, and are they adequate for my business exposure? Does the policy cover both hired and non-owned vehicles, or do I need separate endorsements? How does this coverage coordinate with my employees' personal auto insurance? Are there any exclusions I should know about based on my industry or operations?

Also ask about what happens if your business grows. Can you easily adjust coverage as you hire more employees? What's the process for updating your policy if your business operations change? Understanding these details now prevents surprises later.

Indiana-Specific Considerations

Indiana law requires all drivers to carry minimum auto insurance, including your employees when they drive for business. Make sure your hired and non-owned policy coordinates properly with these state requirements. Some carriers offer additional protections specifically designed for Indiana businesses.

Consider seasonal factors too. Indiana weather can create challenging driving conditions during winter months. While this coverage focuses on liability rather than physical damage, weather-related accidents can increase claim severity. Adequate liability limits protect your business if an employee causes a serious accident during difficult driving conditions.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your business from liability when employees drive for work doesn't have to be complicated or expensive. Hired and non-owned auto insurance provides essential coverage that fills the gap between your commercial policies and personal auto insurance.

Since 1984, we've helped Indiana businesses find the right coverage for their unique situations. We understand that every company has different needs based on how employees use vehicles for work. Our independent agents shop multiple carriers to find you competitive rates without sacrificing the protection your business needs.

Don't wait until after an accident to discover you're not adequately covered. Getting a quote takes just a few minutes and gives you peace of mind knowing your business is protected. Contact our team today for a free hired and non-owned auto insurance quote. We'll review your business operations, explain your coverage options, and help you make an informed decision about protecting your company.

Call any of our Indiana offices or request a quote online. Our agents are ready to answer your questions and provide the personalized service you deserve. Let us show you why businesses throughout Indiana trust us for their commercial insurance needs.