Title: Why Do You Need Hired And Non-Owned Auto Insurance? Author: Teresa Kitchens Published: January 4, 2022 Last modified: March 28, 2022 --- # Why Do You Need Hired And Non-Owned Auto Insurance? If you own a business struggling to thrive in a tremendously competitive environment, insurance is the first thing you need for your company. Businesses need insurance because it helps cover expenses related to property damage and liability claims and thus prevents major losses in the long run. Without insurance, a company may have to settle expensive damages and legal claims against their business out of their own pockets. Depending on the event, this can be an economically devastating scenario for many entrepreneurs. Now imagine this: One of your workers drives his car to deliver your company’s products. On his way back, the car crashes, and he gets injured. Their personal car insurance also expired last month. Will your business be held accountable for this? The answer is, admittedly, yes. After all, many companies use vehicles they do not own in their daily operations. This includes rented as well as employee-owned vehicles (“non-owned”). The use of these vehicles comes with car-loss risks that many business owners don’t recognize, putting their business assets at risk. This is when hired and non-owned auto insurance drives in! ![Information about Hired And Non-Owned Auto Insurance](https://www.sterlinginsnow. com/wp-content/uploads/sites/18/2021/11/Picture1-3.jpg) Why Your Business Needs Hired and Not Owned Auto Insurance ## Why Is Hired And Non-Owned Auto Insurance Vital For Your Business? Hired and non-owned car insurance covers business liability expenses incurred by accidents involving rental or borrowed vehicles (such as employee ownership) used by the company. As a small business insurance service, HNOA can help cover your business’s property damage or personal injury claims caused to others in an accident. Moreover, HNOA policies generally cover liability claims and defense expenses. If a company has to face legal action for an accident, the insurance can cover attorney fees, settlements or judgments, and other court fees. The policy will cover the conduct of full-time and temporary or volunteer personnel. Small businesses usually need this kind of insurance without realizing it. You might think that occasionally asking the employees to use their private vehicles for certain work-related chores is not a big deal. However, this can drag you into car liability issues. Therefore, businesses that depend on rented vehicles for transportation or require employees to use their personal vehicles to do company chores should consider this insurance a wise investment. ![Auto insurance and cars](https://www.sterlinginsnow.com/wp-content/uploads/sites/ 18/2021/11/Picture2-3.jpg) ## What Does HNOA Cover? Hired and non-owned car insurance ensures liability coverage but does not cover damage to the vehicle that an employee drives. To be precise, HNOA insurance helps cover the following aspects: * The physical damage to the person’s car. * The medical bills when a third person gets injured in an accident. * The legal costs for if your business gets sued for negligence. However, a really important point is that even though the HNOA insurance is a form of liability insurance, it does not provide insurance for policyholders. In essence, the insurance will not cover the following aspects: * The damage to the property of your company’s leased or non-owned vehicles. * The medical expenses if you or your employees get injured in an accident while using a rented or personal vehicle. * The liability insurance, damage, or physical injuries caused during an accident if you or your employees drive for reasons unrelated to your business. ### The Cost Of Hired And Non-Owned Auto Insurance When talking about the investment in HNOA insurance, several factors hold accountable in determining the cost. * The operator will consider the age of the driver and their driving record. * The insurance company notes the type and number of vehicles leased or borrowed by the business. * The operator will take the scope of a company’s operations into account. * The operator pays regard to the value of the vehicle and the amount of risk undergone by it. While you may wonder if such an investment is a waste of your company’s assets, that is not the case at all. Any future accident may pose a severe threat to your already struggling business while multiplying the costs that need to be paid and may exceed your budget. You don’t want that, do you? ![Hired And Non-Owned Auto Insurance Application](https://www.sterlinginsnow.com/ wp-content/uploads/sites/18/2021/11/Picture3-3.jpg) ## The Bottom Line The principal role of a business insurance firm is to save your company from any future problems that might harm the business you’ve worked so hard to build. So don’t let a gap in the coverage be a risk for your business assets, and invest in HNOA insurance to make the most of your successful career! That’s why you should contact an insurance company today to smooth the way for you – [contact Sterling Insurance](https://www.sterlinginsnow.com/contact/) for the best results. #### Would You Like Us To Review Your Policies? * Are you a current client of our agency?* - Yes - No * What policy number(s) do you need help with if available? * | | [](https://www.sterlinginsnow.com/hired-and-non-owned-auto-insurance/void(0);?output_format=md) [](https://www.sterlinginsnow.com/hired-and-non-owned-auto-insurance/void(0);?output_format=md) | * What is the nature of your inquiry?* - General Question - ID Card Request - Policy Change Request - Discuss A Claim - Certificate of Insurance * Describe your policy change request * What date do you need this policy change/request to take effect?* * DD slash MM slash YYYY * Which vehicle do you need an ID card for (please enter year, make, and model)? * | Year | Make | Model |   | | | | | [](https://www.sterlinginsnow.com/hired-and-non-owned-auto-insurance/void(0);?output_format=md) [](https://www.sterlinginsnow.com/hired-and-non-owned-auto-insurance/void(0);?output_format=md) | * Your Name* * First Last * Your Email* * Your Phone* * Please list the Additional Insured and/or Certificate Holder * Additional Insured and/or Certificate Holder Address * Street Address Address Line 2 City State / Province / Region ZIP / Postal Code * Details regarding your question, policy change, claim or other request:* * hCaptcha ### Request Your Proposal Here Are you ready to save time, aggravation, and money? 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