Delivery drivers and couriers often use their vehicles to drop products off to customers. This coverage protects against damages sustained by employees when they use personal vehicles for business purposes.
Home » Coverage » Hired and Non-Owned Auto Insurance
Who is HNOA Insurance for?
Hired and non-owned auto (HNOA) insurance covers damages sustained while employees use their vehicles for business reasons. Consider defense costs, liability claims, and settlements after an accident. Even if an employee merely runs a business errand, such as picking up toner at the local office supply store, a personal auto policy won’t always cover damages. Plus, it’s not only employee vehicles that this policy covers; any vehicle hired to complete business-related errands fall under its protection.
On-demand services
The on-demand industry often connects with customers in a personal vehicle.
Software as a Service (SaaS)
Suppose you hired a limo to drive a board member to the airport from the office.
Manufacturing
Consider the exposure of an employee picking up a tool or piece of equipment in their vehicle.
B2B services
A CEO uses their personal vehicle to drive to a board meeting.
Biotech/Healthcare
An employee uses their car to deliver paperwork to a client.
Consultancies
An employee drives to pick up office supplies in their personal vehicle.
Why you need HNOA Insurance
Summary
It’s not uncommon for employees to use their vehicles for business purposes. Think about food delivery drivers and couriers, for example. Many times, they stack products in the back seat of their car to make the delivery. Whether the cargo is food, laundry, important documents, or medical supplies, the personal vehicle is used for the business. Unfortunately, accidents still happen en route, no matter what the mission is.
Reasons for getting HNOA Insurance
Covers employees vehicle during business use
Protects employees from costly liability claims
Provides medical payments
Frequency
If an employee uses a personal vehicle to run a business errand, a personal auto insurance policy will cover damage to the vehicle as long as business use isn’t excluded, but it will not protect the business if the claimant sues.
Limits of personal auto
Limits on a personal auto policy are usually pretty small compared to a commercial auto policy. Those limits can be exhausted quickly, leaving your business exposed.
Vicarious liability
If hired vehicles are essential to your operations you will need HNOA insurance to cover property damage and bodily injury claims that occur during the time an auto was in use.
What Does HNOA Insurance Cover
You will have to consult your policy documents to confirm exactly what coverage your insurance provides but here are some examples of what is covered by HNOA insurance:
Liability claim
For property damage or bodily injury.
Defense costs
Covers the actions of full time, temporary, and volunteer staff.
Attorney fees
Fees associated with any legal services.
Settlements/judgments
Intended to resolve a claim.
Other court costs
If the business is sued as a result of an accident.
HNOA Insurance Claim Examples
Here are some claim examples that illustrate what HNOA Insurance covers
An employees runs company errands or drives to attend company meeting with a potential client in their personal vehicle. On the way, the employee collides with another vehicle at an intersection. HNOA responds to this situation.
At an out-of-state conference, various team members rent vehicles to get around. One of them is involved in an accident. HNOA responds to this situation.
HNOA Insurance FAQs
As with most commercial insurance policies, the cost of HNOA insurance depends on several factors. Here are some of the main points that insurance carriers consider when calculating your premium:
Hired: Cost of hire
Non-owned: Number of employees and location
Miles driven
Radius of driving
Frequency of driving
Physical damage for personal or rented vehicle
Damage to property being transported in vehicle
Accident occurring on employee’s own time, such as running a personal errand
Liability claim: for property damage or bodily injury
Defense costs: covers the actions of full time, temporary, and volunteer staff
Attorney fees: fees associated with any legal service
Settlements/judgements: intended to resolve a claim
Other court costs: if the business is sued as a result of the accident
How it works
Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.
1
Get a quote
Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.
1
Get a quote
Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.
2
Pair with a specialist
No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.
2
Pair with a specialist
No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.
3
Stay one step ahead
To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.
Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.
3
Stay one step ahead
To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.
Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.
While the future of autonomous vehicles is uncertain, the need for a new insurance strategy is clear.
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VP Operations • Pypestream
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Amit Patel
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