Commercial Auto FAQs

What is hired and non-owned auto and does my Georgia business need it?

All FAQs

Quick answer: Hired auto covers vehicles you rent or borrow for business use.

Hired and non-owned auto coverage, often shortened to HNOA, protects your business when vehicles you do not own are used for company purposes. “Hired” means vehicles you rent or lease, and “non-owned” means vehicles owned by employees or others that are driven for your business. Many Georgia businesses need it, even ones that own no vehicles at all, because the liability follows the business, not just the car.

The gap it fills is important. Your commercial auto policy covers vehicles your business owns. But if an employee runs a work errand in their personal car and causes an accident, your business can be sued. The employee’s personal auto policy may not cover business use, leaving your company exposed. HNOA addresses that exposure.

Common situations where it applies:

  • An employee uses their own car to make deliveries, visit clients, or run business errands.
  • Your business rents a truck or van for a project or a busy season.
  • Staff drive personal vehicles between job sites or to the bank for the company.

For example, imagine your office manager drives her own car to pick up supplies and causes a $90,000 injury accident on the way. Her personal policy denies the claim because she was working, and your business is named in the lawsuit. HNOA coverage steps in to defend and pay on your behalf.

HNOA provides liability protection, not physical damage coverage for the borrowed or rented vehicle, so it is about protecting your business from claims. If anyone ever drives for your company, even occasionally, it is worth having. To see whether your Georgia business needs HNOA, request a free coverage review.