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Reasons to Buy Hired and Non-Owned Liability Insurance

By June 9, 2016September 20th, 2019No Comments

Reasons to Buy Hired and Non-owned Automobile Liability Insurance

Hired and Non-owned Automobile Liability Insurance refers to an optional endorsement on a Commercial Automobile insurance policy that offers protection for your business if it is liable when employees, partners, members of your corporation, or members of your household are using an automobile or rented vehicle for business purposes. Since many instances of those using their own personal vehicle(s) for business purposes is more common than not, this endorsement (or separate stand-alone) policy is crucial to a business insurance portfolio. You don’t always have to own a business automobile to enjoy this protection, and so in some instances, this type of insurance can be endorsed onto your General Liability or Businessowners policy. Buying Hired and Non-owned Automobile Liability Insurance may respond if an auto accident occurs and you are sued.

These types of insurance usually cover:

  • Liability claims against business and/or driver
  • Cost of defense
  • Rented or borrowed “autos”

Not covered:

  • Transportation of property damaged in an “auto”
  • Physical damage to one’s own “auto”

Business owners should realize that they will sometimes find themselves in situations where they or an employee will need to use an “auto” for business purposes. A “Nonowned” situation may be a time when employees will need to use a vehicle for errands of many types. This type of insurance can be applicable when, a business asks their employee (s) to buy lunch or pick up office supplies, or inspect, appraise, or deliver items, whether a “product” or simply paperwork to complete a deal. The “Hired” portion of this insurance could respond if one is on a business trip and needs to rent a car.

Therefore, Hired and Non-owned Automobile Liability Insurance covers property damage and bodily injury caused by the vehicle you rented or borrowed.

Additionally, if you rent vehicles often, buying hired and non-owned liability insurance can save you money because you may not have to buy the liability coverage sold by a rental car company. If possible, one should always remember to buy a collision damage waiver (CDW) from them.