Company employees often use autos that are not owned by the business for work-related purposes. Even though the company does not own the vehicle, it could still face liability if damage or injury occurs, and for that reason should consider carrying insurance that covers a hired non owned auto.
Hired Auto Coverage
A hired auto is considered one that the company rents, leases, hires or borrows according to most standard commercial auto policies. They are typically used for just a short duration. Rental agencies frequently carry only a minimum level of liability insurance that may not protect your company against lawsuits.
Non-Owned Auto Coverage
As defined in most insurance policies, a non-owned auto typically includes vehicles owned by employees or owners that are used for business purposes. Salespeople, for example, often use their own vehicles for business. It is risky, however, to assume that the vehicle owner’s personal auto insurance policy will cover any claims filed against the business. If the vehicle owner is not driving the car at the time of the incident, the owner’s insurance may not cover the damages at all.
Driving Down Risk
Considering all types of auto insurance coverage is part of a comprehensive business risk management plan. Covering hired non owned auto usage can help your business drive down risk and make sure the company is covered should an accident occur.