Does Your Business Need Hired And Non-Owned Commercial Auto Insurance?

Business Blog

Businesses that don't have company owned cars may still need commercial auto insurance if they use vehicles for work-related purposes. Specifically, they might need a hired and non-owned commercial auto insurance policy. Here's a look at what this coverage is and what types of businesses may need it.

Coverage for Non-Owned Vehicles

Hired and non-owned commercial auto insurance offers insurance protection for vehicles that are used for work purposes but that a company doesn't own. Most policies offer only liability protection, leaving it up to the individual or organization that owns the vehicles used to provide comprehensive and collision coverage for the vehicle.

If an employee is driving a vehicle that they own or another company owns for work-related purposes, this insurance will usually cover any accidents the employee causes and is found responsible for. The types of vehicles that a policy may be used to insure include:

  • Employee-owned vehicles that are driven between company locations (e.g. stores)
  • Rented vehicles that employees use on a regular basis
  • Loaned vehicles that are driven when company-owned vehicles are being worked on

Coverage Businesses Need

In providing coverage for vehicles that a business uses for work but doesn't own, hired and non-owned commercial auto insurance offers a protection that businesses need.

Since businesses are often held responsible for employee actions while employees are working, a busines might be held financially liable for any accidents employees cause while driving for work. This insurance helps protect against claims that an employee-caused accident involved property damage or personal injury that the business should provide compensation for.

Some types of businesses that have employees drive non-company cars for work include:

  • Restaurants, pizza places and sandwich shops that offer delivery
  • Online food delivery companies that work with local restaurants
  • Businesses with multiple stores that have employees drive between stores
  • Doctors offices and other businesses that send employees on errands
  • Ecommerce retailers that have employees bring items to the post office for shipping

(This is not an exhaustive list of the businesses that may need hired and non-owned commercial auto insurance.)

Coverage That's Available Several Ways

Businesses that need commercial auto insurance coverage have four main ways ot procure coverage. They can:

  • Purchase a stand-alone hired and non-owned commercial auto insurance policy
  • Add hired and non-owned commercial auto insurance to a commercial auto insurance policy
  • Get a business owners policy that includes hired and non-owned coverage
  • Buy a commercial package policy that has this coverage


12 July 2017

Cultural Sensitivity Training For The International Marketer

Hi there, my name is Amanda O'Leary. I have traveled all around the world, with most of my time spent in north Africa and southeast Asia, but I have set foot in every major region of the world. I recommend that literally everyone else do the same. Experiencing such a broad range of cultures can really change your outlook on life. One thing I have noticed is that international businesses still struggle to market to foreigners. Because this is a topic that I am passionate about, I have decided to create a blog designed to help businesses bring their products and brands overseas in a manner that will be culturally sensitive and highly profitable.