Temporary staffing companies and employment agencies face unique liability risks, especially when employees drive vehicles for work-related purposes. Hired and Non-Owned Auto (HNOA) insurance is essential coverage that protects businesses from liability claims when employees use personal or rented vehicles on the job.
What is Temporary Staffing/Hired and Non-Owned Auto?
Hired and Non-Owned Auto insurance provides liability protection for businesses when employees drive vehicles not owned by the company. This includes:
- Hired autos: vehicles leased, rented, or borrowed for business use
- Non-owned autos: employee-owned vehicles used for work-related tasks
For temporary staffing firms, this coverage is particularly important because workers may be assigned to various job sites and may occasionally drive as part of their assigned tasks—even if the company doesn't own any vehicles.
Who needs it
Staffing agencies, temp-to-hire firms, and outsourcing companies that send employees to client locations should consider HNOA insurance. It’s also recommended for any organization where employees may use personal or rented vehicles for deliveries, errands, or transportation between sites. Even a single incident involving a borrowed vehicle can lead to costly liability claims.
What it typically covers
This coverage generally includes:
- Third-party bodily injury and property damage from accidents involving non-owned or hired vehicles
- Legal defense costs associated with covered claims
- Supplemental liability coverage when a client requires proof of auto liability insurance
For example, if a temp worker causes an accident while driving their own car to a client job site, HNOA insurance may cover the resulting liability, depending on policy terms.
Common exclusions or limitations
HNOA policies usually do not cover:
- Damage to the rented or employee's vehicle (physical damage)
- Drivers not authorized by the employer or under the influence at the time of the incident
- Vehicles owned by the business itself (these require a commercial auto policy)
Policyholders should also be aware of exclusions related to high-risk operations or certain vehicle types.
Factors that influence cost
Premiums for HNOA coverage depend on several underwriting factors, including:
- Number of employees with driving exposure
- Frequency and nature of vehicle use
- Business size and annual revenue
- Claims history and risk management practices
Staffing firms with proper driver screening and training procedures may benefit from more favorable terms.
Proof of insurance & compliance
Clients often request a certificate of insurance that includes HNOA coverage before allowing temp workers on site. This certificate demonstrates liability protection in case of auto-related incidents. Some contracts may specifically require this coverage for compliance purposes.
How to get a quote
Getting a quote for Hired and Non-Owned Auto insurance is straightforward. Work with an agent who understands the unique risks of staffing lines and can tailor coverage to your operations. Be prepared to share information about your employee roles, transportation practices, and job-site locations.
Request a customized HNOA insurance quote today.
For related coverage options, you may also want to explore Non-Owned Auto Insurance and Excess Non-Owned Auto Insurance to enhance your protection.
Frequently Asked Questions
Does HNOA insurance cover physical damage to vehicles?
No, it typically covers liability only. Physical damage to the vehicle may require separate coverage.
Is this coverage required by law?
Requirements vary by state and industry. However, it is commonly required by clients in service contracts.
What’s the difference between hired and non-owned auto?
Hired auto refers to vehicles rented or leased by the business. Non-owned auto refers to employee-owned vehicles used for work.
Can independent contractors be covered?
That depends on the policy terms. Some insurers allow coverage for contractors if specified in the policy.
Why do temporary staffing agencies need this coverage?
Because their employees may drive to or between job sites, creating potential auto liability exposures for the agency.
Still have questions? Talk to a local insurance expert.