Do I need hired and non-owned auto (HNOA) coverage?

You need hired and non-owned auto coverage, often called HNOA, if anyone drives for your business in vehicles your business does not own. That includes employees running errands in their own cars, renting a vehicle for a job, or using a personal truck to make deliveries. If that ever happens at your company, the answer is almost certainly yes. HNOA is available through Olive Cover.

Here is the gap it fills. A standard commercial auto policy covers vehicles titled to your business. It does not protect your business when an employee causes an accident in a personal or rented vehicle while working. The employee’s personal auto policy may not respond to business use, leaving your company exposed to a lawsuit. HNOA closes that hole by extending your business liability to those hired and non-owned vehicles.

For example, imagine an employee at your Atlanta marketing firm drives her own car to drop off materials and rear-ends another driver, causing $90,000 in injuries and damage. Her personal policy might deny the claim because she was working, and your business could be sued directly. With HNOA in place, your policy responds and protects the company instead of leaving the cost on your books.

The same gap shows up with rented vehicles. If you rent a truck for a busy week and an employee causes an accident in it, that vehicle is not on your commercial auto policy either, so HNOA is what stands between your business and the claim. Many owners are surprised how often their team uses personal or rented vehicles for errands, deliveries, client visits, and supply runs without anyone thinking about insurance.

HNOA is usually inexpensive, especially when added alongside a general liability policy or a business owners policy, which makes it one of the easiest gaps to close. Almost any business with employees should at least consider it. Get a free coverage review and we will tell you whether HNOA belongs in your program and how to add it.