Hired and non-owned auto insurance (HNOA) provides liability protection for personal, rented, and leased vehicles that a company or freelancer uses for business purposes.
State laws require commercial auto insurance for business-owned vehicles – but small tech companies often rely on vehicles they don't own. If your business uses personal, rented, or leased vehicles, hired and non-owned auto insurance (HNOA) can help.
HNOA protects against lawsuits from accidents involving personal, rented, and leased vehicles used for work purposes.
You can usually add it as an endorsement to your general liability insurance or business owner’s policy (BOP).
HNOA provides liability coverage when someone sues over an accident involving a personal, rented, or leased vehicle used by your business. This policy covers legal expenses related to:
In other words, you'll be protected if someone sues over injuries or other damages from the accident. However, this policy won't cover vehicle repairs.
Unlike commercial auto insurance, hired and non-owned auto insurance doesn't cover collision damage. You'll need a separate policy for collision.
Learn more about hired and non-owned auto insurance coverage.
You may think carrying personal auto insurance is enough. However, personal auto policies won't cover lawsuits related to business use.
If you get into an accident while driving your personal vehicle for work, your personal auto policy will cover the damage to your vehicle only. You could be sued and have to pay for damages and legal expenses out of pocket.
The cost of a HNOA policy is based on a few factors, including:
Vehicles registered to a business are required to carry commercial auto insurance in every state except New Hampshire and Virginia. State requirements set minimum liability coverage amounts for bodily injury and property damage, and in some instances, for uninsured motorist coverage.
Even if your business is located in one of the two exempt states, you are still liable for damages if your company vehicle is involved in an accident.