Hired and Non-Owned Auto Coverage
Plain English
Hired and non-owned auto coverage protects your business when someone drives a car it doesn't own for work, such as an employee running an errand in their own car or a rental for a business trip. If they cause a crash, it helps pay for the other people's injuries and damage, typically above the driver's own policy.
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On this page
Definition
Hired and non-owned auto coverage (HNOA) is business liability coverage for accidents involving vehicles the business doesn't own, such as employees' personal cars driven for work and cars the business rents. It generally pays for injuries and damage to others, not damage to the vehicle itself.
Why It Matters
A business can be liable for a crash an employee causes while working, even in the employee's own car. Personal auto limits are often low, and general liability policies typically exclude auto accidents.
Real-World Example
Imagine an employee drives her own car to deliver documents and causes a crash that injures another driver, with $150,000 in medical bills. Her personal auto policy pays its $50,000 limit. The injured driver also claims against the business. The business's HNOA coverage responds to the remaining liability, up to its limit.
Common Misconceptions
- Assuming no company cars means no auto liability.
- Expecting HNOA to pay for damage to the employee's own car.
Key Takeaways
- Triple-I: if you use a personal vehicle for "client meetings, business errands or deliveries, you may need hired and non-owned auto insurance (HNOA)."
- A business "could wind up liable for property damage and bodily injuries" from an employee's at-fault crash on business, per Triple-I.
- It generally covers liability to others, not the car itself.
- Triple-I says it can be added to a business auto policy.
Frequently Asked Questions
Does HNOA cover a rental car's damage?
Generally not; it's liability coverage. Rental damage is a separate question.
What's it commonly confused with?
Non-owner car insurance, which is a personal policy for people who drive but don't own a car.
Related Terms
Related Coverages
- Commercial Auto Insurance
Related Scenarios
Explore the rest of the Business Insurance category.
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The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Insuring your business: business vehicle insuranceInsurance Information Institute (Triple-I)
Educational information, not advice: This page is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers.