What Is HNOA Insurance?
Coverage for Accidents Involving a Vehicle that Your Small Business Uses for Work but Doesn’t Own. Hired and Non-Owned Automobile Insurance (HNOA) 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. Hired and Non-Owned Automobile Insurance coverage can provide liability coverage for both third-party bodily injuries and property damage.
Weinsurexyz Offers Hired and Non-Owned Automobile Insurance (HNOA)
Hired Auto & Non-Owned Auto coverage is typically added as an endorsement on a General Liability policy. When there are no vehicles titled in the company name this coverage will meet the contract requirement for Commercial Auto coverage. Hired and Non-Owned Automobile Insurance (HNOA) is designed for your small business! Hired and Non-Owned Automobile Insurance 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. Hired Auto coverage replaces or augments the liability coverage offered by auto rental agencies. However, the vehicle must be rented in your company’s name and this does not replace the physical damage coverage that applies to any damage you cause to the vehicle you are renting. You should still obtain physical damage coverage from the rental agency. Non-Owned Auto coverage protects your company in the event that your company is sued as a result of an auto accident that you or one of your employees has in a personal vehicle while on company business. This coverage will not protect you or your employee personally, only your personal auto policy will do that.
Legal Defense Costs
Even if your company is not legally responsible for some claim someone makes against you, it can be quite expensive to defend yourself against such claims. Fortunately, your liability policy will typically pay for:
- Any defense costs incurred directly by the insurance company, including attorney’s fees, witness fees, and police reports;
- Any court costs or related costs you’re charged in connection with a legal suit;
- Reasonable expenses you incur at the insurance company’s request to assist in your defense (such as loss of earnings if you have to testify in court). Your liability policy will also pay the premium for any bond the court requires, making sure judgment will be paid if you are found legally liable for some injury or damage.
Why Do I Need Hired and Non-Owned Automobile 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 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?
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
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
Compare Commercial Auto Insurance Costs & Quotes
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