Hired and non-owned auto liability coverage is an essential type of insurance coverage for businesses that rent or use vehicles that they do not own. This coverage can protect businesses from financial loss in the event of an accident involving a rented or non-owned vehicle.
Hired auto liability coverage provides protection for businesses that rent or lease vehicles for business purposes. This coverage will typically cover damages or injuries caused by the rented or leased vehicle, including liability for bodily injury or property damage. Hired auto liability coverage is important for businesses that use rental vehicles regularly, such as delivery companies or businesses that frequently rent vehicles for employee travel.
Non-owned auto liability coverage is a type of insurance that provides coverage for accidents that occur while an employee is using their personal vehicle for business purposes. This coverage can protect businesses from liability for accidents that occur while an employee is using their personal vehicle on behalf of the business. Non-owned auto liability coverage is important for businesses that have employees who use their personal vehicles for work-related tasks, such as salespeople or administrative assistants.
Meet Jane, the owner of a small real estate office. One day, Jane asks her assistant, Lisa, to run some errands for the office. Lisa uses her personal car to drive to the post office and then the bank to deposit some checks. On her way back to the office, Lisa accidentally hits a pedestrian while making a turn, causing injuries and damages to the pedestrian and their property.
Since Lisa was using her personal car for work-related tasks, Jane’s business is potentially liable for the damages and injuries caused by Lisa’s actions. Luckily, Jane had purchased non-owned auto liability coverage, which provided protection for her business in this situation. The coverage helped pay for the pedestrian’s medical bills and property damage and also covered legal fees associated with the claim.
Without non-owned auto liability coverage, Jane’s business would have been responsible for paying the damages and medical bills out of pocket. This could have been a significant financial burden for her small business.
In this scenario, non-owned auto liability coverage proved to be essential for Jane’s real estate office. By purchasing this coverage, Jane was able to protect her business from potentially costly legal and financial consequences of an accident involving an employee’s personal vehicle used for work-related tasks.
Overall, this claim example highlights the importance of considering non-owned auto liability coverage for businesses that have employees who use their personal vehicles for work-related tasks. This coverage can provide valuable protection for businesses and help them avoid financial loss in case of an accident.
Both hired and non-owned auto liability coverage can provide valuable protection for businesses, but it’s important to understand the limitations of these coverages. For example, non-owned auto liability coverage typically only provides coverage for third-party liability claims, which means that it will not cover damage to the employee’s vehicle or any injuries sustained by the employee in the event of an accident. Additionally, hired and non-owned auto liability coverage typically do not cover vehicles that are owned by the business or vehicles that are rented or leased for personal use.
When considering whether to purchase hired or non-owned auto liability coverage, businesses should carefully evaluate their needs and risks. For businesses that frequently rent or lease vehicles, hired auto liability coverage can be a valuable investment. For businesses with employees who use their personal vehicles for work-related tasks, non-owned auto liability coverage can provide important protection. These coverages can help businesses avoid financial loss in the event of an accident involving a rented or non-owned vehicle. That’s why we encourage businesses to carefully evaluate their needs and risks with a Worthy insurance professional to determine whether hired or non-owned auto liability coverage is the right choice for them.
Interested in learning more? Please email us at hello@worthyinsurance.com or call 773-945-9000.
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Worthy Insurance is a niche broker with a focus on providing insurance placement and risk management services to the Healthcare, Manufacturing, Social Service, and Main Street business communities. Here at Worthy Insurance, we love to provide you with exciting and fun articles to learn more about insurance and how it impacts your life. Visit our other blogs to find more information.
While Worthy does offer a wide variety of insurance coverages, our main coverages include property coverage, worker’s compensation insurance, general liability, professional liability, and cybersecurity coverage. To find out the best coverages for your company, use the contact form below so you can be at ease knowing your company is covered. For personal insurance, please visit Vero Insurance.
