Hired & non-owned liability explained

• Hired autos: vehicles the business rents, leases, or borrows (short-term rentals, delivery vans, etc.).
• Non-owned autos: employee-owned or third-party vehicles used for business errands or job duties.
• Liability only: covers bodily injury and property damage to others—not damage to the vehicle itself.

HNOA protects the business—not the driver’s car.

• Employee errands: running to the bank, job site, supplier, or post office in a personal vehicle.
• Sales and service travel: employees driving their own cars to meetings or client locations.
• Rental vehicles: cars rented for business travel, short-term jobs, or temporary needs.
• Borrowed vehicles: trucks or vans borrowed from another business or individual.

If an accident occurs and the business is named in the lawsuit, HNOA is typically the coverage that responds.

If the trip is for business, the liability often follows the business.

• No physical damage: It does not pay to repair or replace the vehicle being driven.
  Damage to employee or rental vehicles is handled by personal auto insurance or separate coverage.
• No coverage for owned autos: Vehicles titled to the business require a commercial auto policy.
• No personal liability replacement: The driver’s personal auto insurance is usually primary; HNOA is excess over personal limits.
• Scope matters: Coverage applies only when the vehicle is being used for business purposes.

HNOA fills a liability gap—it does not replace personal or commercial auto insurance.

• No company vehicles: businesses that rely entirely on employee-owned cars.
• Growing teams: more employees means more driving—and more exposure.
• Client contracts: many contracts require hired & non-owned auto limits to be shown on a COI.
• Urban or high-traffic areas: frequency risk increases with mileage and congestion.

Claims often arise from minor errands—not major deliveries or long trips.

The smallest trips are often the biggest surprises.

• Employee causes a serious accident: The injured party sues the business for negligence related to job duties.
  Personal auto limits are exhausted quickly; the business has no auto liability coverage.
• Rental car incident: A rented vehicle is involved in a crash; the rental agreement pushes liability back to the business.
• COI rejection: A client requires hired & non-owned auto limits, but the policy only shows general liability.
• Umbrella gap: An umbrella policy requires underlying HNOA limits that were never added.

Many auto-related claims against businesses start as “we don’t even own a car.”

• Attached to GL or BOP: commonly endorsed onto general liability or a business owners policy.
• Limit selection: often matches auto liability limits (e.g., $1M per occurrence).
• Umbrella coordination: umbrella policies often sit excess over HNOA—if it exists.

Because HNOA is inexpensive relative to the exposure, it’s often overlooked during initial setup.

Cheap coverage to add—expensive coverage to miss.

• Do employees ever drive for work? Even occasionally.
• Do you rent or borrow vehicles? For travel, jobs, or temporary needs.
• Do contracts require it? Many clients expect HNOA to be shown on a COI.
• Do you carry an umbrella? Confirm the underlying auto liability requirements.

If the answer to any of these is “yes,” HNOA deserves a closer look.

Does HNOA replace personal auto insurance?
No. The driver’s personal auto policy is usually primary. HNOA protects the business if it’s named in the claim.

Is HNOA expensive?
Typically no. It’s often one of the least expensive endorsements on a commercial policy.

Do independent contractors count?
It depends. Misclassification and control issues matter. Ask before assuming contractors are excluded.