Hired & Non-Owned Auto Insurance

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance covers liability when employees drive vehicles your business doesn't own. This includes personal cars used for work errands, rental vehicles for business trips, or borrowed vehicles. If an employee causes an accident while running a work-related task in their own car, their personal auto policy pays first—but those limits often fall short. That's where this coverage steps in.

Think of it as a safety net for liability gaps. Your employee's personal insurance might cover $100,000, but what if the accident results in $300,000 in damages? Without hired and non-owned coverage, your business could be on the hook for the difference. The Hutch Agency's insurance agents help you understand exactly what this coverage does and whether it makes sense for your operation.

This policy doesn't cover physical damage to the vehicle itself—that's the responsibility of the vehicle owner's insurance. It specifically addresses liability exposure your business faces when employees drive vehicles you don't own. Many businesses add this as an endorsement to their general liability or commercial auto policy, making it a cost-effective way to close a critical coverage gap.

What Does Hired & Non-Owned Auto Insurance Cover?

Hired and non-owned auto insurance covers bodily injury and property damage liability arising from employee use of non-owned vehicles for business purposes. Here's what that includes:

• Employee personal vehicles: Coverage applies when employees drive their own cars to the bank, deliver documents to clients, or run other work-related errands
• Rental cars: Protects your business when employees rent vehicles for business travel, conferences, or client meetings
• Borrowed vehicles: Covers situations where an employee borrows someone else's car for work purposes
• Bodily injury liability: Pays for injuries to other people if your employee causes an accident while driving for work
• Property damage liability: Covers damage to other vehicles or property resulting from an at-fault accident
• Legal defense costs: Includes attorney fees and court costs if your business faces a lawsuit from a covered accident

The coverage kicks in after the driver's personal auto insurance limits are exhausted. If your employee has a $100,000 liability limit and causes a $250,000 accident, their policy pays the first $100,000, and your hired and non-owned coverage handles the remaining $150,000 (up to your policy limits).

What this insurance doesn't cover is equally important to understand. It won't pay for physical damage to the vehicle being driven, comprehensive or collision losses, or injuries to your employee driving the vehicle. It also won't cover employees driving company-owned vehicles—that requires a commercial auto policy. This coverage is specifically designed for the liability gap created when employees use vehicles your business doesn't own.

How Much Does Hired & Non-Owned Auto Insurance Cost?

The cost of hired and non-owned auto coverage varies based on several business-specific factors. Because this is typically added as an endorsement rather than a standalone policy, many businesses find it affordable compared to full commercial auto insurance.

The number of employees who drive for business purposes significantly affects your premium. If you have three employees who occasionally make bank runs versus 20 sales representatives constantly on the road, you'll see different rates. Insurers also consider how frequently employees drive for work—daily business driving presents more exposure than occasional errands.

Your coverage limits matter too. Higher limits provide more protection but cost more. Many businesses start with limits that match their general liability coverage to maintain consistent protection across policies. The frequency of rental car use also plays a role. If your team travels often and regularly rents vehicles, that increases your exposure and typically raises premiums.

Industry and business operations influence pricing as well. A consulting firm where employees drive to client sites weekly has different risk than a retail shop where driving happens monthly. Your claims history and the driving records of employees also factor into the equation. Bundling this coverage with your general liability or business owner's policy often reduces the overall cost through multi-policy discounts.

Working with an independent agent gives you access to multiple carriers, which means competitive pricing. Getting quotes from several insurers helps you find the best combination of coverage and cost for your specific situation.

Do I Need Hired & Non-Owned Auto Insurance?

If employees ever drive for work-related purposes in vehicles your business doesn't own, you need this coverage. Many business owners assume their employees' personal auto policies provide adequate protection, but that's a risky assumption. Personal policies are designed for personal use, and they may not fully cover business activities.

You definitely need hired and non-owned coverage if employees regularly drive their personal vehicles to the bank, post office, or office supply store for work. Sales teams visiting clients, consultants traveling to job sites, or managers running errands all create liability exposure for your business. Even if driving isn't a primary job function, occasional business use warrants coverage.

Businesses that frequently rent vehicles for employees absolutely need this protection. If your team travels for conferences, client meetings, or site visits, every rental car trip creates potential liability. The rental company's insurance often has significant gaps, and your business could face serious financial exposure without proper coverage.

Some contracts and leases require proof of hired and non-owned auto insurance before you can do business. Clients want assurance that you carry adequate liability coverage for all business operations, including when your employees are on the road. Not having this coverage could cost you business opportunities.

Even small businesses with just a few employees benefit from this protection. A single serious accident could result in hundreds of thousands in damages. The relatively low cost of hired and non-owned coverage provides significant financial protection against potentially devastating liability claims.

How to Get Hired & Non-Owned Auto Insurance in Ohio

Getting hired and non-owned auto coverage in Ohio starts with assessing your business's driving exposure. Document how often employees drive for work, what types of trips they make, and whether you regularly rent vehicles. This information helps agents recommend appropriate coverage limits.

Ohio doesn't specifically mandate hired and non-owned coverage, but the state does require businesses to carry adequate liability insurance. If employees drive for work in non-owned vehicles and you don't have this coverage, you're exposing your business to significant liability. Many commercial leases and client contracts in Ohio require proof of comprehensive liability coverage, which should include hired and non-owned auto.

Most businesses add hired and non-owned coverage as an endorsement to their existing general liability or business owner's policy. This approach is usually more cost-effective than purchasing a standalone policy. The endorsement typically costs less than a full commercial auto policy while still providing essential liability protection.

Working with an independent agent in Ohio gives you access to multiple insurance carriers. Not all insurers offer the same rates or coverage options for hired and non-owned auto, so comparing quotes is important. An independent agent can explain the differences between policies and help you find coverage that matches your budget and risk exposure.

Review your coverage annually as your business grows. If you hire more employees, increase business travel, or change how often your team drives for work, your coverage needs may change. Keeping your agent informed about business changes ensures your protection keeps pace with your operations.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your business from liability when employees drive for work is too important to leave to chance. Hired and non-owned auto insurance fills a critical gap that many business owners don't realize exists until it's too late. The good news is that getting coverage is straightforward and often more affordable than you might expect.

The Hutch Agency has helped Ohio businesses find the right insurance solutions since 1995. We work with multiple carriers to compare coverage options and find competitive rates. Our agents take time to understand your business operations and recommend coverage that actually fits your needs—not just what's easy to sell.

Getting started is simple. We'll ask about your business, how employees use vehicles for work, and your current insurance coverage. From there, we'll shop multiple carriers and present you with options that make sense for your situation and budget. There's no pressure, just honest advice from experienced professionals.

Ready to protect your business? Contact our team today for a free hired and non-owned auto insurance quote. We'll help you understand your coverage options and find the right protection for your business operations.