Non-Owned & Hired auto liability covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or caused by non-owned vehicles (vehicles owned by others, including vehicles owned by your employees).
It usually does not pay for physical damage to the vehicle itself; that's covered by the owner's insurance. Although this option is sometimes available.
Whether you realize it or not, as a business owner, you at least occasionally find yourself in situations where this coverage is needed. Errands and rental situations always come up.
- You send an employee to pick up lunch.
- While on a business trip, you rent a car.
- To impress a visiting client, you send a limo to have him picked up.
- An employee runs to pick up office supplies.
- Coverage kicks in if there is an auto accident and you are sued.
You don't have to own a business vehicle to have this coverage. In most situations, coverage can be added to your general liability policy.
If you rent cars occasionally, having hired and non-owned auto liability insurance may save you money because you can avoid buying the liability coverage from the rental company. However, we always suggest you purchase collision damage waiver (CDW) protection from them.