What is hired and non-owned auto coverage?

Hired and non-owned auto coverage protects your business when someone drives a vehicle for work that your company does not own. “Hired” means vehicles you rent or lease, like a moving truck for a job. “Non-owned” means personal cars that owners or employees use for business errands, such as a staffer driving their own car to the bank or to a client meeting.

This coverage matters because a standard commercial auto policy only covers vehicles you own and list. It also matters because a personal auto policy can deny a claim once the insurer learns the car was being used for business. That gap leaves your company exposed to the liability, meaning the cost of injuries or damage you cause to others.

Hired and non-owned coverage usually pays only for liability, not for damage to the borrowed or rented vehicle itself, so check that detail when you renew a rental. It is often inexpensive and can be added to a business owners policy or general liability program.

For example, a Savannah catering employee runs to a supplier in her own car, rear-ends another driver, and causes $40,000 in injuries. Her personal insurer denies the claim because she was working. With hired and non-owned auto coverage in place, the business policy responds and pays the claim instead of the owner.

If anyone ever drives for your business, this is worth confirming. Ask us for a free coverage review at our coverage review page.