Hired & Non-Owned Auto Insurance

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance protects your business from liability when employees drive vehicles your company doesn't own. This includes employees using their personal cars for business errands or rental vehicles for work trips. Love Insurance Agency's insurance agents help you find the right coverage for your business operations.

This coverage fills a critical gap in your business protection. Your commercial auto policy covers vehicles your business owns, but it doesn't protect you when employees drive their own cars or rentals for work. Hired auto coverage handles rental and leased vehicles, while non-owned auto coverage addresses employee personal vehicles used for business purposes.

Most businesses add this coverage as an endorsement to their general liability or commercial auto policy. It's designed to cover liability claims that exceed the limits on an employee's personal auto policy. If an employee causes an accident while running a work errand, their personal insurance pays first. Your hired and non-owned policy kicks in when their limits are exhausted or if they have no coverage.

This protection is essential even if you don't require employees to drive for work. The moment an employee uses their car to pick up office supplies or meet a client, your business faces potential liability exposure.

What Does Hired & Non-Owned Auto Insurance Cover?

This coverage protects your business from liability claims resulting from accidents involving vehicles you don't own. Here's what your policy typically covers:

• Bodily injury liability: Medical expenses, lost wages, and legal costs when an employee causes an accident in a personal or rental vehicle while conducting business
• Property damage liability: Repair or replacement costs for other vehicles and property damaged in an accident
• Legal defense costs: Attorney fees, court costs, and settlements if someone sues your business after an accident
• Rental vehicle coverage: Protection when employees rent cars for business trips, client meetings, or company events
• Employee personal vehicle use: Coverage when staff members use their own cars for deliveries, errands, or client visits

Your policy responds after the employee's personal auto insurance pays out its limits. If an employee has a $100,000 liability limit and causes $250,000 in damages, their policy pays the first $100,000. Your hired and non-owned coverage handles the remaining $150,000, up to your policy limits.

The coverage also protects you if an employee doesn't have personal auto insurance or their policy denies the claim because of business use exclusions. Many personal auto policies specifically exclude coverage for business activities, leaving your company exposed.

What this policy doesn't cover is equally important. It won't pay for damage to the employee's vehicle or rental car—that's covered by their personal policy or the rental agreement's collision damage waiver. It also doesn't cover cargo or equipment in the vehicle, injuries to the employee driver, or intentional acts.

Your coverage follows your employees, not specific vehicles. Whether they drive their sedan to a client meeting or rent a truck for a delivery, you're protected as long as they're conducting business activities.

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

Your premium depends on several factors related to your business operations and employee driving activities. Insurance companies evaluate your risk level to determine your rate.

The number of employees who drive for business is the biggest factor. A company with five employees who occasionally run errands pays less than one with fifty salespeople constantly on the road. Insurers also consider how often employees drive for work. Daily business driving creates more exposure than occasional trips.

Your coverage limits directly affect your cost. Higher limits provide more protection but increase your premium. Most businesses choose limits between $500,000 and $1 million to adequately protect their assets.

The types of vehicles your employees typically use also matter. If your team regularly rents larger vehicles or uses their personal cars for frequent long-distance travel, you'll pay more than a business with minimal vehicle use.

Your industry influences your rate too. Real estate agents, consultants, and sales representatives who spend significant time driving face higher premiums than office-based businesses with occasional vehicle use.

Your claims history plays a role in pricing. Businesses with previous accidents involving non-owned vehicles may see higher rates. Conversely, a clean loss history can help you secure better pricing.

You can potentially reduce your premium by bundling this coverage with your existing commercial auto or general liability policy. Many insurers offer discounts for multiple policies. Implementing a strong driver safety program and maintaining strict vehicle use policies can also help lower your costs.

The best way to find competitive rates is to compare quotes from multiple carriers. An independent agent can shop your coverage across different insurers to find the best value for your specific situation.

Do I Need Hired & Non-Owned Auto Insurance?

You need this coverage if employees ever drive vehicles your business doesn't own for work purposes. This includes more situations than you might think.

Real estate agents who drive clients to property showings in their personal vehicles need this protection. Consultants who travel to client sites, sales representatives who visit prospects, and contractors who pick up supplies all create exposure for their employers.

Even office-based businesses face risk. If you ask an employee to pick up lunch for a meeting, deposit checks at the bank, or run to the store for office supplies, you need coverage. A single errand can result in a costly accident and lawsuit.

Many commercial leases and contracts require this coverage. Property owners want assurance that your business carries adequate insurance before signing agreements. Some clients won't work with vendors who lack proper coverage.

You're also at risk if employees occasionally rent vehicles for business. Attending conferences, meeting distant clients, or handling special projects often requires rental cars. The rental company's insurance provides minimal protection, and your employee's personal policy may exclude business use.

If you reimburse employees for mileage, you definitely need this coverage. The IRS mileage reimbursement implies business use, creating employer liability. Courts often hold businesses responsible for accidents during reimbursed travel.

Small businesses with limited vehicle use sometimes skip this coverage, thinking they're safe. But a single serious accident can result in hundreds of thousands in damages and legal fees. The relatively low cost of this insurance makes it a smart investment for nearly every business.

You might not need this coverage if your business truly has zero employee driving. If everyone works remotely, you explicitly prohibit any vehicle use for business, and you never rent vehicles for company purposes, you may be able to skip it. But most businesses benefit from this protection.

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

Getting this coverage in Ohio is straightforward, especially when you work with an independent agent who understands state requirements and business needs.

Ohio law doesn't specifically require hired and non-owned auto insurance, but your business can still face significant liability if an employee causes an accident while driving for work. Many Ohio businesses choose this coverage to protect their assets and meet contractual obligations with clients and landlords.

Start by evaluating your actual exposure. Document which employees drive for business, how often they drive, and what types of vehicles they typically use. Include regular activities like client visits, deliveries, errands, and occasional rental car use. This information helps your agent recommend appropriate coverage limits.

Consider your business assets and potential liability. If someone sues your company after a serious accident, they can go after your business property, equipment, and other assets. Choose limits that adequately protect what you've built.

Most Ohio businesses add this coverage as an endorsement to their existing commercial insurance policy. It's often the most cost-effective approach and simplifies your insurance management. You can typically add it to your general liability or commercial auto policy.

Review your current insurance policies to identify any gaps. Your commercial auto policy covers company-owned vehicles, but it won't protect you from liability when employees use personal or rental vehicles. Your general liability policy provides broad protection but may not extend to auto-related claims.

Work with an independent agent who can compare options across multiple carriers. Different insurers price this coverage differently based on their risk appetite and underwriting guidelines. Shopping multiple quotes ensures you get competitive rates without sacrificing coverage quality.

Ask about available discounts and ways to reduce your premium. Bundling policies, implementing driver safety programs, and maintaining clean loss history can all help lower your costs while maintaining strong protection.

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. Love Insurance Agency makes it easy to get the coverage you need at rates that fit your budget.

We shop multiple top-rated carriers to find the best combination of coverage and price for your specific business. Our team understands the unique risks Ohio businesses face and knows which insurers offer the strongest protection and most competitive rates.

You'll get personalized guidance on coverage limits, policy options, and ways to potentially reduce your premium. We explain your options in plain language so you can make informed decisions about protecting your business.

Ready to get started? Contact our team for a free quote today. We'll review your business operations, explain your coverage options, and provide quotes from multiple carriers so you can compare and choose the best fit. Get the protection your business needs without overpaying for coverage.