Simply Explaining Insurance #49. Hired and Non owned Auto

There are two coverages inside of a commercial auto policies that you need to be aware of. Hired and non-owned auto will protect your business if you and/or your employees are in an accident.

Hired auto will cover you if you are renting a car for business. The liability from your policy will transfer over if you are in an at fault accident. There is another coverage available in some states called, “Hired physical damage” which will cover the car itself. It’s important to know if you have this on your policy.

Non-owned auto, will cover your employees if they are driving their car for business purposes. Their vehicle will not be covered but the liability from your business policy will transfer over to cover any medical expenses or property damage from the resulting at-fault accident your employee is in.