You may have seen the term hired non owned auto coverage on your commercial insurance policy. You may not be fully aware of why this coverage is so important, yet your agent suggested adding it to the package. Let us share why this type of policy matters.
Vehicle Coverage When You Aren’t the Owner
If your company relies on employee’s to take care of business errands, their vehicles are not covered by a standard commercial auto policy. This special protection extends loss and liability coverage to automobiles used for work purposes but are not company-owned. If an employee goes to pick up the mail or the office lunch, accidents that occur while on company time but in their personal vehicle are eligible for insurance assistance with financial and legal liabilities. A hired non owned auto policy can be purchased as a stand-alone policy or as an additional supplement to a standard commercial purchase.
If your company rents vehicles for the sales team, special events or conference attendees, you would need to consider this additional coverage. It is not just for employee vehicles. Anytime a company employee operates an automobile the company does not own and it is for work purposes, this extended coverage is suggested.