Hired and non-owned auto coverage is arguably the most overlooked insurance coverage in the industry. This coverage is important weather you send an employee to run an errand or to pick up lunch for the staff one accident can put your business at risk of a lawsuit.
Employers at some time have employees driving on their behalf and do not think of the consequences if a serious accident occurs this is why adding hired & non owned auto is important. The cost is minimal when compared to the protection it can provide.
When?This coverage should always be included in your small business insurance program.
Why?This may be your single largest exposure! Virtually all client contracts require proof of Hired and Non-Owned coverage.
Hired auto liability coverage will pay for damages to a third party, on behalf of your company, if you cause an accident or an injury to someone while you are driving a rented car or “non-owned” vehicle for business. For example, if you rent a car to visit a client, and cause an accident on the way there, the person you hit will look to your company to pay the damages. Without this coverage, your company may have no insurance coverage for a rented car.