The supply run
An employee picks up office supplies in their own car and causes an accident. The injured driver sues your company too.
HNOA can defend and protect the business.
Commercial Property & Casualty
Hired & non-owned auto, for the cars you don't own.
Hired and non-owned auto (HNOA) liability protects your business when employees drive their own cars, or rented and borrowed vehicles, on company business and cause an accident.
What hired & non-owned auto covers.
The employee's personal auto policy usually pays first, but injured parties often sue the employer too, and serious accidents can exceed personal limits. HNOA gives the business its own liability protection. It's commonly added to a business owner's policy, general liability package or commercial auto policy.
- Non-owned auto liabilityInjuries and property damage when an employee drives a personal vehicle for business errands, client visits or deliveries.
- Hired auto liabilityLiability for vehicles your business rents, leases short term or borrows.
- Defense costsLegal defense when the business is named in a suit.
What it typically doesn’t cover
- Damage to the vehicle being drivenDamage to the employee's car is handled by their personal auto policy; rental damage needs physical damage coverage or the rental company's waiver.
- The employee's injuriesCovered by workers' compensation. Workers' Compensation Insurance
- Vehicles the business ownsOwned or long-term leased vehicles need commercial auto. Commercial Auto Insurance
- Commuting and personal errandsCoverage applies to business use, not personal driving.
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The rental car
A rental car on a business trip is involved in a collision.
Hired auto liability can respond for injuries and damage to others.
The client visit
A salesperson causes a serious accident on the way to a client meeting, and the injured driver's claim exceeds the salesperson's personal auto limits.
HNOA can respond for the business's liability above the personal policy.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Commercial Auto InsuranceCoverage for business vehicles and fleets, from one truck to many.Business Owner's Policy (BOP)Liability, property and business income coverage combined into one policy.Umbrella & Excess Liability InsuranceAdditional liability limits above underlying commercial liability policies.General Liability & Products Liability InsuranceThird-party bodily injury, property damage and products-related claims.Questions
Common questions about hired & non-owned auto, answered.
Does HNOA cover damage to my employee's car?
No. HNOA is liability coverage for the business. Damage to the employee's car is handled by the employee's own auto policy.
Can I add HNOA to a BOP?
Often, yes. Many carriers let you add hired and non-owned auto to a business owner's policy or general liability package. It can also be added to a commercial auto policy.
Is HNOA primary coverage?
Non-owned coverage is typically excess over the employee's personal auto policy, which usually pays first. Hired auto coverage for rentals may respond differently depending on the policy.
How much does hired & non-owned auto cost?
HNOA is usually one of the less expensive coverages to add. The price depends on how many employees drive for work, how often and how far they drive, your type of business and the limit you choose. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.