We Make Hired and Non Owned Auto Insurance Easier
Some businesses that either lease, rent, or borrow a vehicle or vehicles to use for business purposes need to get protection in the form of liability coverage to cover them against liabilities. This type of auto coverage is called Hired and Non-Owned Auto or HNOA. With this auto policy, your business is protected from costs involving commercial liabilities as provoked by accidents using a hired vehicle or a borrowed personal vehicle from an employee and is used for the business.
Lawsuits can certainly be very costly, so considering getting a hired and non-owned auto insurance is very important if your businesses depend on either rented, hired auto, or borrowed to transport products or perform other tasks for the business, which involve travel. A hired and non owned auto insurance policy is something that employers should consider as an investment.
What is the Liability Coverage for a Hired and Non-Owned Auto Insurance?
This commercial auto liability insurance offers coverage in the event of claims and at the same time will also pay for costs involving legal and defense, which may include settlements, attorney fees, and the like when your company is sued because of an auto accident.
Having a hired and non-owned auto policy also offers protection to your business when your employees, whether full-time, volunteer, or temporarily cause bodily injury or property damage while driving to fulfill a task for your business.
What is Not Covered in the Hired and Non-Owned Auto Liability Insurance?
Although this auto insurance provides so much liability coverage, some aspects are not covered by this insurance policy. Costs related to the physical repair of the hired or employee-owned vehicle as well as property damage while on transport inside the non owned auto are not part of the coverage.
Liability coverage for HNOA also does not include accidents that occur while the employee is commuting or while the employee is doing a personal task but uses the hired auto, whether during work hours or after.
When an employee encounters a collision while doing work-related duties and is using a personal vehicle, personal auto insurance will pay for the damages incurred. Still, this policy will not cover the business in case of a claim. This then is where HNOA will serve its purpose.
How Does HNOA Insurance Work?
HNOA Insurance solely covers business hired vehicles, meaning autos on the lease, borrowed, hired, or under rent and used exclusively for business purposes. This kind of insurance policy usually works on either a primary or secondary coverage.
The cost of this type of auto coverage differs as it is based on various factors, such as the age of the driver, their driving record, and the kind of vehicle used. It also includes whether the vehicle will be used internationally, locally, or both, the number of vehicles on rent or borrowed, and how often these autos are going to be driven, and a lot more.
There are ways to minimize your risk exposures from your hired auto or non owned auto. Some of these are by having regular auto record checks, making sure that the driver does not have a major driving record, imposing a stricter age requirement for the driver, the driving experience, etc. The employer can also try to get feedback about the driver’s driving behavior while they are on the road.
If a company owns their business vehicles that are purely used for work, a commercial auto policy is the best choice. Like personal auto insurance, commercial auto policy covers physical damage, liability coverage, medical expenses in case the driver or the passengers need treatment, and it also covers damages if the one at-fault is either underinsured or uninsured.
Non owned auto liability policy, on the other hand, covers for damages of vehicles that are owned by the employee which they are using for the business of their employer. Non-owned auto liability insurance is for a non owned vehicle of the company and is also not on the lease and is neither a hired auto.
When the employee has their own auto insurance, this will first be applied in case of a claim, and it protects the interest of the employer. Business autos non-owned liability insurance does not apply to other types of vehicles such as golf carts, bicycles, and the like. When its driver causes damage to property or injury, general liability coverage will cover this.
A company that does not have HNOA insurance is putting their assets exposed to risks, so whether this kind of insurance is required in your state or not, it is always better to be on the safe side. Without HNOA insurance and an accident happen, the employer could be held liable. Try to reach out to a reliable and trusted insurance company so they can discuss all the policies involving vehicles. They can help you determine the most appropriate insurance for your business.
There are so many policies available that you could choose, which will help protect your business against liabilities. Besides auto insurance, you may also get other types of policies to get the maximum coverage, such as general liability coverage or a different kind of business insurance. If you are a business owner with more employees, you may also want to get workers’ compensation insurance, etc.
Why Do You Need an HNOA?
This kind of coverage comes in handy for several reasons. Among them is that your employee’s insurance might have already lapsed or that their insurance only has the minimum limits. Another reason may also be that your employee’s vehicle is not well maintained or that their driving record is not within the standards.
HNOA protects your business assets in the event of an accident, so be sure to consider this policy.
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