Hired & Non-Owned Auto Insurance

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance (HNOA) covers your business for liability when employees drive vehicles your company doesn't own. This includes rental cars, borrowed vehicles, or personal cars used for business purposes. If an employee causes an accident while running a work errand in their own car, their personal auto policy covers the claim first. HNOA kicks in when those limits are exhausted or if they try to deny coverage because the vehicle was used for business. Our agents help you understand how this coverage fills critical gaps in your business protection.

You don't need a fleet of company vehicles to need this coverage. Many businesses assume their commercial general liability policy covers employee driving, but it typically doesn't. HNOA is designed specifically for businesses whose employees occasionally drive for work but don't have dedicated company vehicles. The coverage protects your business from lawsuits and claims that could otherwise drain your operating budget or threaten your company's future.

This insurance works alongside your other commercial policies. It complements your commercial auto policy if you have company vehicles, and it pairs naturally with general liability insurance. The coverage is relatively inexpensive compared to full commercial auto insurance because you're not insuring specific vehicles—just the liability exposure from employee driving activities.

What Does Hired & Non-Owned Auto Insurance Cover?

HNOA insurance provides liability coverage when employees drive vehicles not owned by your business. Here's what the policy typically covers:

• Bodily Injury Liability: Medical expenses, lost wages, and legal costs if an employee injures someone while driving for business purposes
• Property Damage Liability: Repair or replacement costs when an employee damages another person's vehicle or property during business use
• Legal Defense Costs: Attorney fees, court costs, and settlement expenses if your business faces a lawsuit from an accident
• Rental Vehicle Coverage: Protection when employees rent cars for business trips, conferences, or client meetings
• Personal Vehicle Use: Coverage when employees use their own cars for work tasks like deliveries, errands, or traveling to job sites

The policy covers hired vehicles, which are cars your business rents or borrows temporarily. It also covers non-owned vehicles, which are personal cars that employees drive for your business. Both scenarios create liability exposure that your general liability policy won't address.

Your HNOA coverage applies whether the employee is driving across town or across the state. It protects you when they're picking up office supplies, meeting with clients, making deliveries, or attending work-related events. The coverage follows the business activity, not the specific vehicle.

Important exclusions exist. HNOA doesn't cover physical damage to the rental or personal vehicle itself—that's the driver's responsibility through their personal policy or the rental company's damage waiver. It also doesn't cover employees using vehicles for personal activities unrelated to work. The policy focuses specifically on liability to third parties when vehicles are used for legitimate business purposes.

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

The cost of HNOA insurance varies based on several factors specific to your business operations. Your premium depends on how many employees drive for work, how often they drive, and the nature of their driving activities. A consulting firm with occasional client visits will pay less than a catering company with daily deliveries.

Coverage limits significantly affect your premium. Higher liability limits provide more protection but cost more. Most businesses start with limits matching their general liability policy to maintain consistent protection across coverages. Your insurance agent can help you determine appropriate limits based on your industry and risk exposure.

The number of employees who drive matters. Insurance companies assess risk partly on exposure—more drivers create more potential for claims. You'll need to provide an estimate of how many employees regularly drive for business purposes. This doesn't mean everyone on your payroll, just those who actually use vehicles for work tasks.

Your industry and business activities influence pricing. Professional services firms typically pay less than businesses involving frequent driving or delivery activities. Claims history matters too. A clean record helps keep premiums low, while past auto-related claims can increase costs.

Many businesses bundle HNOA with their general liability or business owner's policy, which often results in savings compared to purchasing separate policies. The coverage is generally affordable—often a few hundred dollars annually for small businesses—because you're not insuring physical vehicles, just liability exposure. Getting quotes from multiple carriers through an independent agent helps you find competitive rates while ensuring adequate protection for your specific situation.

Do I Need Hired & Non-Owned Auto Insurance?

If employees ever drive for business purposes in vehicles your company doesn't own, you need this coverage. The exposure exists whether driving happens daily or just occasionally. One serious accident can result in claims exceeding personal auto policy limits, leaving your business financially responsible for the difference.

You definitely need HNOA if your employees regularly run business errands, meet with clients off-site, attend conferences or training events, make deliveries, or travel between job sites. Even office employees who occasionally pick up supplies or make bank deposits create liability exposure. The coverage is essential for consulting firms, real estate agencies, non-profits, professional services, sales organizations, and any business without company vehicles but with mobile employees.

Many commercial leases and client contracts require proof of hired and non-owned auto coverage. Building owners want protection if your employee causes an accident while conducting business at their property. Clients often require it before awarding contracts, especially for professional services or on-site work.

Ohio law doesn't specifically require HNOA insurance, but it doesn't protect you from liability either. When an employee causes an accident while working, injured parties can sue your business regardless of whether the vehicle belongs to you. Their personal auto policy may deny coverage for business use, or its limits may prove inadequate for serious injuries. Your business then becomes the target for claims and lawsuits.

Some businesses mistakenly believe their general liability policy covers employee driving—it doesn't. Others assume the employee's personal auto insurance fully protects the business—it often doesn't, especially when limits are exhausted or business use exclusions apply. HNOA fills these dangerous gaps affordably, protecting your business assets and operations from devastating liability claims.

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

Getting HNOA insurance in Ohio starts with understanding your actual exposure. Make a list of employees who drive for business purposes, even occasionally. Document how often driving occurs and what types of activities involve vehicles. This information helps insurance carriers accurately assess your risk and price your coverage.

Working with an independent agent gives you access to multiple insurance carriers at once. Different companies specialize in different industries and risk profiles, so comparing options helps you find the best coverage at competitive rates. Independent agents can also package HNOA with your other business policies for potential savings and simplified management.

Ohio requires all drivers to carry minimum liability insurance, but those limits often aren't enough for serious accidents. When an employee drives for your business, you want coverage limits that actually protect your company from significant claims. Discuss appropriate limits with your agent based on your industry, business size, and potential exposure.

The application process is straightforward. You'll provide basic business information, estimated number of employees who drive, types of driving activities, and desired coverage limits. Unlike commercial auto insurance, you won't need vehicle identification numbers or detailed driver information because you're not insuring specific vehicles.

Most carriers can issue HNOA coverage quickly once you complete the application. The policy typically takes effect within a few business days. Review your coverage annually as your business grows or changes. Adding employees, expanding service areas, or increasing client travel may require adjusting your coverage to maintain adequate protection for your evolving business needs.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your business from employee driving liability doesn't have to be complicated or expensive. Ley Insurance Agency has helped Ohio businesses find the right coverage since 1987. We work with multiple top-rated carriers to compare options and find policies that match your specific needs and budget.

Getting started takes just a few minutes. We'll ask about your business operations, how employees use vehicles for work, and what coverage limits make sense for your situation. Then we'll shop multiple carriers to find you competitive rates without compromising on protection.

Ready to protect your business? Contact our team for a free quote today. We'll explain your options clearly, answer your questions, and help you make an informed decision about coverage that safeguards your business from costly liability claims.