If you own your own business, you may occasionally have employees driving their personal cars while conducting business activities. You might also have situations where rental cars or leased vehicles are used. In cases like these, investing in hired non-owned auto insurance will provide the best coverage to address potential liabilities.

Commercial Auto Insurance

Most companies carry a commercial auto insurance policy. However, these policies only pertain to accidents or incidents involving employees driving work-owned vehicles and conducting work-related business. To cover liabilities when employees are driving personal or company-leased vehicles, a special policy is needed.

What It Might Cover

With a hired non-owned auto policy, most of the gaps left by a commercial policy are covered. However, it is only applicable to vehicles not registered, owned or associated at all with the business. This policy would then cover claims whenever the accident involves:

• Employees picking up office supplies but using their personal vehicle
• A limo or chauffeured ride for an important client
• Rental vehicles for employees when traveling for business-related ventures
• Employees sent to pick up the office lunch order

It is best to extend the coverage of your general commercial liability by adding a hired non-owned auto policy to your package. It is an effective way to reduce the risks and liabilities associated with your employee’s auto use during business hours.