What is Hired and Non-Owned Auto Liability?
Hired and non-owned auto liability insurance (HNOA) is a type of commercial auto coverage that protects businesses when employees drive vehicles not owned by the company for work-related tasks. This includes rented vehicles (hired) or personal vehicles owned by employees (non-owned). It covers liability costs if an accident occurs while someone is driving a non-company vehicle for business purposes.
Who Needs It
HNOA coverage is important for businesses that:
- Have employees who drive their personal cars for work tasks like deliveries or client visits
- Rent vehicles for short-term business purposes
- Use services like rideshares or car rentals in their operations
Even if your company doesn’t own any vehicles, you may still be held liable if an employee causes an accident while driving for business purposes.
What It Typically Covers
This type of policy generally covers:
- Third-party bodily injury and property damage caused by an employee while driving a non-company vehicle for work
- Legal defense costs related to a covered claim
It does not cover damage to the vehicle being driven or injuries to the driver. It’s a liability-only coverage meant to protect the business from lawsuits and claims.
Common Exclusions and Limitations
HNOA policies usually do not cover:
- Damage to the hired or non-owned vehicle itself
- Personal errands or non-business use of a vehicle
- Vehicles owned by the company
- Employees who fail to maintain valid driver’s licenses
Always review policy details to understand specific exclusions and conditions.
Factors That Influence Cost
Several factors can affect the cost of HNOA coverage, including:
- Number of employees using personal or rented vehicles for work
- Driving records of employees
- Nature of business operations and vehicle use
- Coverage limits and deductibles selected
Proof of Insurance & Compliance
Many clients, vendors, or contracts may require proof of HNOA coverage. While requirements vary by state, carrying this insurance helps demonstrate your business is prepared and responsible. It can also be essential when bidding on contracts or working with larger organizations.
How to Get a Quote
Getting coverage is simple—many insurance providers offer HNOA as an add-on to a general liability policy or a standalone option. Get a quick quote today to see what coverage could look like for your business.
Frequently Asked Questions
Is hired and non-owned auto insurance required by law?
It’s not typically required by law, but some contracts or clients may require it. It’s a smart choice for businesses with vehicle-use risks.
Does HNOA cover employee-owned vehicles?
Yes, it covers liability when employees use their own vehicles for business purposes, but it doesn’t cover damage to their personal vehicles.
Can I get HNOA coverage if my business doesn’t own any vehicles?
Yes, HNOA is designed for businesses that don’t own vehicles but still face auto-related liability risks.
Is physical damage to the rented vehicle covered?
No, HNOA typically covers liability only. You may need a separate policy or vehicle rental agreement for physical damage coverage.
Can sole proprietors get HNOA insurance?
Yes, sole proprietors who use non-owned or rented vehicles for business purposes can benefit from this coverage.
Still have questions? Talk to a local insurance expert.