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Hired & Non-Owned Auto Insurance

Hired Driver Insurance

Businesses that use company-owned vehicles to deliver goods normally purchase commercial auto insurance to cover accident-related liabilities. But, if your Colorado business frequently rents, leases, or borrows vehicles to transport items or perform office errands, it’s entirely a different matter. For this, you need separate insurance called hired and non-owned automobile insurance.

Cushion Your Business Against Costly Liabilities

“Hired and non-owned automobile” refers to any vehicle that your company doesn’t own but uses in conducting business activities, including any employee’s personal vehicle utilized for business purposes.

A hired and non-owned auto policy is especially ideal if you have a small or medium-sized business as this keeps you safe from bankruptcy. It ensures that costly lawsuits arising from accidents while driving hired vehicles won’t wreak havoc on your finances.

A type of liability coverage, the policy takes care of injuries and property damage to others in a vehicular accident you or your employee is found liable for as well as legal fees if your company is sued. However, your or your employee’s injuries and any damage to the vehicle (whether it is rented, leased, or borrowed from your staff) are excluded from the coverage.

Who Needs Hired and Non-Owned Auto Insurance

Hired and non-owned auto insurance is typically not available as a standalone policy. You can buy it as an add-on to your general liability insurance or business owners policy. It is particularly beneficial in the following scenarios:

  • Your administrative staff often drives their car when performing business-related errands.
  • Your executive frequently uses their own vehicle when making sales visits or traveling to out-of-town business meetings.
  • Your company rents or leases a car for long-term periods for business travel purposes.
  • Your business rents or leases vehicles to move inventory.
  • Your employees use their vehicles for company-sponsored events.

Generally, the policy is a must for businesses in certain industries such as:

  • Cleaning services
  • Real estate
  • Home-based business
  • Building design
  • Information technology
  • Healthcare
  • Contracting and construction
  • Consulting
  • Insurance
  • Pet care
  • Business-to-business services
  • On-demand services
  • Manufacturing
  • Consultancy

Request a Tailored Coverage in Colorado

Whether your staff is making a delivery or attending an offsite meeting in their personal vehicle or a vehicle that your company rents or leases, accidents still happen.

We can shop and tailor the appropriate coverage for you so you can focus on maintaining your business income while minimizing risks. Contact us online for a quick quote.