Hired and non-owned auto insurance (HNOA) cover commercial liability expenses triggered by accidents involving hired (rental cars) or borrowed vehicles (employee-owned) for business use. Businesses operating with rented vehicles to facilitate transportation or ask employees to run errands in their personal vehicles should consider HNOA insurance as a wise investment.
In today’s highly litigious society, lawsuits can end up being extremely expensive, and having a comprehensive truck insurance program is growing more important than ever. Let’s take a look at this crucial piece of that coverage program.
Hired & Non-Owned Coverage
Coverage generally pays liability claims and defense costs. It can cover attorney fees, settlements or judgments, and other court costs if the business is sued due to an accident. The policy covers the actions of full-time and temporary employees.
It doesn’t cover physical repair expenses for the rented or employee-owned vehicle, nor does it cover any damage to property being transported. If an employee rents a truck to transport supplies to a business partner and becomes involved in a collision in which the truck and the supplies were damaged, those physical damages would not be covered under an HNOA policy.
Commercial Auto Vs. HNOA
HNOA differs from commercial auto insurance as it simply covers vehicles that are hired or borrowed by organizations for business use.
HNOA insurance was once a standard extension to commercial auto policies for a nominal charge. However, years of unhealthy combined ratios, sustained losses and inadequate rates in commercial auto have led to some markets tightening their reins in terms of what risks they’re willing to take on. The HNOA sector has felt the impact of this widespread gear shift.
Risk Mitigation
Companies that use hired and employee-owned vehicles must indicate that in their trucking insurance needs and can mitigate some of their exposures by carrying out regular vehicle record checks to ensure their employees have no major driving infractions. They can also enforce strict driver age requirements, driving experience requirements, and take advantage of the booming telematics technology market to get accurate feedback on driver behavior.
Non-Owned Auto
Your policy does not cover non-owned autos for auto liability insurance by default. This is an additional coverage that must be added.
Do your business’s operations include any of the following?
- Trailer interchange
- Non-owned auto covers semi-tractors
- Employee personal vehicles
- Additional equipment or other power equipment not owned by the company
Non-owned auto coverage broadens the policy to include liability insurance for non-owned autos.
Hired Auto
Hired auto is also a coverage that must be added. Your truck insurance agent can help you identify whether you need hired auto coverage. Hired auto covers equipment you rent or lease unexpectedly or on a long-term basis. Since most auto liability policies are on a “schedule auto only” basis, this coverage broadens the policy to include “hired autos”, similar to renting a car under a personal auto policy.
About Tobico Trucking Insurance
Trucking insurance is one of the most difficult types of insurance to obtain, but it doesn’t have to be. At Tobico Trucking Insurance, we are experienced and knowledgable about the trucking insurance market and the needs of trucking operations of all types and sizes. You need an agent who has the specialized knowledge of this ever-changing industry, and we have the products and the dedicated customer service to provide you with what you need. For more information, contact us any time of day at (469) 731-0707 to find out how we can help you.
