B2Z's Hired and Non-Owned Automobile Insurance (HNOA) is designed for your small business! HNOA insurance might be necessary for your small business if you sometimes rely on your employees to use their personal or rented vehicles for business purposes. If you or your employee causes an accident, your business could be liable for third-party damages totaling thousands or more. HNOA insurance can help protect you and is available as an add-on to your business owner's policy (BOP) or general liability policy. Learn more below!
B2Z Offers Hired and Non-Owned Automobile Insurance (HNOA)
What Is HNOA Insurance?
Hired and Non-Owned Automobile Insurance (HNOA) is an add-on coverage that can protect your business from losses involving vehicles that are driven for business purposes but are personally owned by your employees or rented by your company or employees. HNOA coverage can provide liability coverage for both third-party bodily injuries and property damage.
Why Do I Need HNOA Insurance?
Insurance protection is more critical than ever. If your employees sometimes use their personal vehicles or a rented auto to perform business duties, you should consider HNOA coverage for your small business.
Every driver faces risks on the road. If your employee caused property damage or bodily injury to someone else in an accident, HNOA insurance helps cover those claims.
Keep these statistics in mind...
- There were over 6.7 million motor vehicle accidents reported to police in the US in 2018 Work-Related Accidents
- 40% of all accidents happened during a work-related activity
- Accidents involving non-fatal injuries can cost an average of $78,000
Consider these scenarios...
A computer technician who works for your company drives their personal car to a client’s location and hits a cyclist. HNOA would typically cover the cyclist’s medical and damages costs.
Your assistant is involved in an auto accident while driving their car to drop off a business package at the post office. The other driver involved sues your business for their medical bills and vehicle repairs. HNOA would typically cover your legal costs and any judgment against your business.
We could talk about Hired and Non-Owned Automobile Insurance all day…
We really want you to understand if you need Hired and Non-Owned Automobile Insurance! So... Do your employees routinely use their personal vehicles to perform their job duties? Does your team rent cars to meet with remote clients or for other business reasons? If so, consider HNOA! Many small businesses rely on their employees to use their personal or rented vehicles for business purposes. And accidents happen! HNOA coverage is essential because it typically provides liability coverage for both bodily injuries and property damage to third parties involved in accidents. So what is covered when you add HNOA to your business owner's policy or general liability policy?
Hired and Non-Owned Automobile Insurance Typically Covers:
- Medical expenses if someone else is injured
- Damage to someone else’s property
- Attorney fees and related legal and judgment costs assessed to your business
- For personal autos, coverage kicks in once you or your employee’s personal automobile coverage has reached its limit
This seems almost too good to be true, right? There must be a catch... And, here’s a sampling of what’s not covered:
Hired and Non-Owned Automobile Insurance Typically Excludes:
- Vehicles owned or regularly operated by your business
- Physical damage to the hired or non-owned automobile (generally covered by a personal auto insurance policy or rental car agreement)
- Damage to property being transported such as sales samples
- Damage that happens during an employee’s commute
- Damage that happens while an employee is running a personal errand
- Damage that occurs outside of business hours
HNOA Insurance Frequently Asked Questions
You can add HNOA coverage to your business owner's policy or general liability policy. It is not available as a standalone coverage.
Simply stated: you pay premiums based on your HNOA coverage selection and business details on behalf of your small business monthly or annually. In exchange, the insurance company agrees to pay claims and associated expenses covered by the policy. Your policy documents are the legal contract between your small business and the insurance company. When your business experiences a coverable event, you submit a claim. The insurance company will then consider your limits, deductible, and claim amount.
Commercial auto insurance covers vehicles registered to your business. But what happens when your employee gets into their personal car to run a business errand? Or when your sales representative uses their own vehicle to drive to a client pitch? What happens when you need to rent a car to transport some of your business equipment? Does a commercial auto policy provide coverage if they get into an accident? Since those cars are personal or rented, no.
Will the employee's personal auto policy cover damage to their vehicle itself? Yes! However, if the employee causes damage to a third-party car or property and is at fault for the accident, not only can they be sued for damages, but so can your business. The only insurance that can help cover legal fees associated with this lawsuit on behalf of your business is Hired and Non-Owned Automobile Insurance.
HNOA provides coverage for medical expenses and property damage claimed by third parties and legal fees associated with any claims and/or judgments.
What is covered by this coverage will be fully detailed in the policy documentation.
HNOA does not cover vehicles that are owned, registered to, or regularly operated by your business, or damage to the hired or non-owned automobile itself (this is generally covered by a personal auto insurance policy or rental car agreement).
What is excluded by this coverage will be fully detailed in the policy documentation.
HNOA Insurance is not required by law.