What is hired and non-owned auto insurance?

Hired and non-owned auto insurance covers liability when employees drive vehicles they don't own for business purposes. 'Hired' covers rented or leased vehicles, while 'non-owned' covers employee-owned vehicles used for business.

Why do I need this coverage if employees have their own insurance?

Personal auto policies may not fully cover business use. If an employee causes an accident while working, the injured party may sue your company. This coverage protects your business from those claims.

Does this cover damage to the rented vehicle?

Hired and non-owned typically provides liability coverage only, not physical damage to the rented vehicle. You may need to purchase the rental company's collision damage waiver or add physical damage coverage.

When would I use a substitute vehicle?

Substitute vehicles are often used when your regular fleet vehicle is being serviced, repaired, or is temporarily unavailable. This coverage ensures you're protected while using temporary replacements.

Flexible Vehicle Coverage

Hired & Non-Owned Auto Insurance

Coverage for vehicles you rent, borrow, or use for business that aren't on your policy. Essential protection for substitute vehicles while your primary vehicle is being serviced.

What is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance provides liability coverage when your business uses vehicles that aren't part of your owned fleet. This includes rental cars, employee personal vehicles used for business errands, and substitute vehicles.

For transportation companies, this coverage is especially important when fleet vehicles are being serviced or repaired and you need temporary replacements to keep operations running.

Types of Coverage

Hired Auto Coverage

Covers vehicles you rent or lease for business use.

Rental cars and vans
Short-term leased vehicles
Borrowed vehicles for business
Loaner vehicles from dealers

Non-Owned Auto Coverage

Covers employee-owned vehicles used for work.

Employee cars on business errands
Personal vehicles for client visits
Contractor-owned vehicles
Volunteer driver vehicles

Substitute Vehicle Coverage

Covers temporary replacements for your fleet.

Vehicles while yours is in service
Temporary replacements after accidents
Backup vehicles during repairs
Overflow capacity vehicles

What's Protected

Liability protection for your business.

Bodily injury to third parties
Property damage liability
Legal defense costs
Settlement and judgment costs

Why Transportation Companies Need This Coverage

Fleet Downtime Protection

When your vehicles are being serviced, you need coverage for substitute vehicles to keep operations running.

Gap in Employee Coverage

Personal auto policies often exclude or limit business use, leaving your company exposed to lawsuits.

Rental Car Gaps

Rental companies' insurance may not provide adequate limits for commercial transportation operations.

Frequently Asked Questions

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