Hired & Non-Owned Auto Insurance

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance covers your business for liability when employees drive vehicles your company doesn't own. This includes rental cars, employee personal vehicles used for work errands, and borrowed vehicles. Garland Insurance's agents help you understand when this coverage makes sense for your operation.

This coverage fills a critical gap in your insurance protection. Your commercial auto policy only covers vehicles your business owns or leases. When an employee drives their own car to pick up supplies or rents a vehicle for a business trip, you need hired and non-owned auto coverage. It protects you from liability claims if that employee causes an accident while conducting business.

The coverage typically includes bodily injury and property damage liability. If your employee hits another vehicle while running a work errand in their personal car, this policy responds. It covers legal defense costs, medical expenses for injured parties, and property damage up to your policy limits.

Many businesses add this as an endorsement to their general liability or business owner's policy. It's an affordable way to extend your protection without purchasing expensive commercial vehicle policies.

What Does Hired & Non-Owned Auto Coverage Include?

Your hired and non-owned auto insurance provides specific protections when employees use vehicles not owned by your business. Understanding what's covered helps you determine if your current limits are adequate.

Non-Owned Auto Liability

This portion covers liability when employees drive their personal vehicles for business purposes. Key coverage includes:

• Bodily injury liability for people hurt in accidents your employee causes
• Property damage liability for vehicles and property your employee damages
• Legal defense costs if someone sues your business after an accident
• Medical payments for injuries sustained in covered accidents
• Coverage when employees use their cars for deliveries, client visits, or errands

Hired Auto Liability

This section responds when your business rents or borrows vehicles. Coverage includes:

• Liability protection for rental cars used for business travel
• Coverage for borrowed vehicles your employees drive for work
• Short-term rental protection for trucks or vans
• Legal defense if someone files a claim after an accident in a rental

What's Not Covered

Understanding exclusions helps you avoid coverage gaps. This policy typically doesn't cover:

• Physical damage to the hired or non-owned vehicle itself
• Your employee's personal injuries from an accident
• Vehicles your business owns or leases (those need commercial auto insurance)
• Employees using vehicles for regular commuting to work
• Intentional acts or criminal activity

The employee's personal auto insurance provides primary coverage in most situations. Your hired and non-owned policy acts as excess coverage, protecting your business when the employee's limits aren't sufficient.

How Much Does Hired & Non-Owned Auto Insurance Cost?

Your premium depends on several business factors. Insurance carriers evaluate your risk profile to determine rates. Each company weighs these factors differently, which is why comparing quotes matters.

The number of employees who drive for business significantly impacts your cost. A business with five employees who occasionally make bank runs pays less than one with fifty field representatives constantly on the road. Carriers look at how many people need coverage under the policy.

Frequency and purpose of business driving affect pricing. If your team makes daily client visits or frequent delivery runs, you'll pay more than a business where employees rarely leave the office. The type of business activity also matters—a salesperson visiting clients presents different risk than a contractor picking up materials.

Your coverage limits directly influence premium. Higher liability limits cost more but provide better protection. Many businesses choose $1 million in coverage, though your needs may differ based on your industry and risk exposure. Discuss appropriate limits with your agent rather than just choosing the cheapest option.

Your claims history impacts rates. A clean record with no prior accidents involving employee vehicles keeps costs down. Previous claims signal higher risk to carriers. Your industry classification also plays a role—some business types face more driving risk than others.

Ways to potentially manage your premium include bundling this coverage with your general liability policy, maintaining a strong safety program, implementing driver screening policies, and shopping multiple carriers. Independent agents access various insurers, helping you find competitive rates without sacrificing necessary protection.

Do I Need Hired & Non-Owned Auto Insurance?

You need this coverage if employees ever drive for business purposes in vehicles your company doesn't own. Many business owners mistakenly assume their commercial auto policy or the employee's personal policy provides adequate protection. That's rarely the case.

Your business faces liability exposure whenever an employee drives on your behalf. If your sales rep causes a serious accident while visiting a client in their personal car, the injured party can sue your business for damages exceeding the employee's personal policy limits. Without hired and non-owned coverage, you pay those costs out of pocket.

Businesses that should carry this coverage include professional services firms with field staff, companies whose employees run business errands, organizations that reimburse mileage for business driving, businesses whose employees rent cars for work travel, and companies without owned vehicles but whose operations require occasional driving.

Even if you tell employees not to use personal vehicles for work, you may still face liability. Courts often find businesses responsible for accidents that occur during work activities, regardless of official policies. Proper insurance coverage provides better protection than written policies alone.

Some general liability policies include limited hired and non-owned coverage, but the limits are often insufficient. Review your current policies with your agent to identify gaps. Many businesses discover they're either uninsured or underinsured for this exposure.

Consider the financial impact of a serious accident. Medical expenses and property damage from a significant crash can easily exceed $500,000. Legal defense costs add up quickly even if you're not ultimately liable. The relatively modest cost of hired and non-owned coverage makes it one of the most cost-effective ways to protect your business.

How to Get Hired & Non-Owned Auto Insurance in Florida

Florida businesses face unique considerations when securing hired and non-owned auto coverage. The state's high percentage of uninsured drivers and expensive auto injury claims make this protection particularly important.

Start by assessing your current business practices. Document how often employees drive for work, what types of activities require driving, how many employees use personal vehicles for business, and whether your team rents vehicles for business travel. This information helps your agent recommend appropriate coverage limits.

Review your existing insurance policies before adding coverage. Your general liability policy may already include some hired and non-owned protection, though limits are often minimal. Check whether employees who regularly drive for business are properly covered under your commercial auto policy instead.

Florida doesn't specifically mandate hired and non-owned coverage for most businesses, but that doesn't mean you should skip it. Client contracts often require proof of this insurance, especially in professional services and consulting. Many commercial leases and business agreements now include hired and non-owned auto insurance in their insurance requirements.

Independent agents can add this coverage as an endorsement to your existing policies or write it as a standalone policy. The endorsement option is typically more affordable and convenient. Your agent can also ensure your coverage limits align with other liability policies and contract requirements.

When comparing options, ask about coverage territory (some policies limit coverage to specific states), whether the policy provides excess or primary coverage, what happens if an employee's personal policy denies a claim, and how the policy responds if an employee is uninsured or underinsured. Understanding these details prevents surprises when you need to file a claim.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your business from liability when employees drive for work doesn't have to be complicated or expensive. Hired and non-owned auto insurance provides essential coverage that fills gaps left by commercial auto and personal auto policies.

Garland Insurance has helped Florida businesses find the right coverage since 1987. We work with multiple carriers to compare options and find policies that match your specific needs. Our agents understand the unique risks businesses face and can recommend appropriate coverage limits.

Don't wait until after an accident to discover you're not properly covered. Contact our team today for a free quote. We'll review your current policies, identify any gaps, and provide options that protect your business without breaking your budget. Get started now and have peace of mind knowing your business is protected when employees drive for work.