Understanding Hired and Non-Owned Auto Insurance
Modern work doesn’t always happen at the office. Teams drive to client meetings, run quick errands, travel to conferences, or pick up supplies. The moment an employee gets behind the wheel for business, the company takes on auto liability. Even a short trip can create legal and financial risk if an accident occurs.
Hired and Non-Owned Auto Insurance, often called HNOA, is the protection that helps keep your business covered in these moments. This article explains what HNOA coverage includes, what it excludes, who needs it, how pricing works, and claims scenarios that show why it matters.
Key Takeaways
- Hired and Non-Owned Auto Insurance protects your business from liability when employees drive personal, rented, or hired vehicles for work.
- Employee accidents during business travel can create serious exposure for the company, even when personal auto insurance exists.
- HNOA covers third-party injury, property damage, and legal defense. It doesn’t cover damage to the employee’s vehicle or injuries to the employee.
- General Liability Insurance and Business Property Insurance don’t cover auto incidents. HNOA fills this gap.
- Any business with employees who drive for work needs this protection, even if the driving is occasional or minor.
What is Hired and Non-Owned Auto Insurance?
HNOA protects your company when employees drive vehicles that the business doesn’t own. This includes personal cars, rental cars, borrowed vehicles, and hired transportation used for business activity. If an employee is involved in an accident while performing job-related duties, the company can be held liable, even when the employee’s personal auto insurance is involved.
Most companies add HNOA to a General Liability or Business Owners Policy (BOP). It fills the gap between an employee’s personal auto insurance and the commercial auto coverage a business might buy if it owns vehicles. Without HNOA, a work-related accident can leave your business responsible for injuries, property damage, and legal fees that aren’t covered elsewhere.
What Does Hired and Non-Owned Auto Insurance Cover?
HNOA applies to personal cars, rental cars, borrowed vehicles, and hired transportation used for work. Coverage focuses on losses suffered by others, not the driver. This includes:
Bodily Injury Liability
HNOA covers injuries to other drivers, pedestrians, or passengers, including:
- Medical bills
- Lost wages
- Pain and suffering
- Funeral costs
- Settlements, judgments, and legal fees
Employee injuries aren’t included. Those fall under Workers’ Compensation or Health Insurance.
Property Damage Liability
HNOA covers physical damage to someone else’s property caused during a work-related trip, including:
- Other vehicles
- Gates and fences
- Buildings
- Landscaping or other structures
If an employee damages a client’s property while driving for work, HNOA helps protect your business once any primary coverage is exhausted.
Legal Defense
Your company may be named in a lawsuit even when an employee’s personal auto insurer is already involved. HNOA covers the cost of defending your business, including:
- Attorneys’ fees
- Court expenses
- Expert witnesses
- Settlements and judgments, up to the policy limit
How Primary and Excess Coverage Works
HNOA typically acts as excess coverage. The employee’s personal auto insurer usually responds first. HNOA steps in when:
- The personal policy denies the claim due to business use
- The damages exceed the personal policy’s limits
For rental vehicles, the rental company’s minimum liability coverage usually pays first. HNOA covers what remains.
Learn more about what Hired and Non-Owned Auto Insurance covers.
What Does Hired and Non-Owned Auto Insurance Not Cover?
HNOA provides liability protection only. It doesn’t cover damage to the vehicle being driven or injuries to the employee behind the wheel, including:
- Damage to an employee’s personal vehicle
- Damage to a rental or hired vehicle
- Injuries to your employee or anyone else in the car
- Personal use or commuting
- Accidents involving company-owned or company-leased vehicles
- Delivery activity under Vouch policies, which needs broader coverage
- Certain situations involving independent contractors
HNOA applies only when a vehicle is being used for business purposes. Personal errands, commuting, or activities outside of job responsibilities aren’t included. HNOA can’t replace Commercial Auto Insurance when your company owns or registers vehicles.
How Much Does Hired and Non-Owned Auto Insurance Cost?
Pricing is based on your company’s driving exposure. Insurers look at who drives, how often they drive, and the nature of their work. These details signal how likely an auto claim may be. Considerations include:
- How often employees drive for work
- How many employees may drive as part of their job
- The distance and frequency of trips
- Your industry and associated risks
- The geographic areas where driving occurs
- Your claims history
- Whether employees transport clients
- The limits you select
Companies with occasional driving often see lower premiums when adding HNOA to an existing General Liability or BOP. Businesses with regular or higher-risk driving typically pay more because the chance of an accident increases. Essentially, there’s no single price point. The cost of HNOA reflects your company’s driving habits and the level of protection you require.
Learn more about how much Hired and Non-Owned Auto coverage costs.
Who Needs Hired and Non-Owned Auto Insurance?
Any business with employees who drive for work should carry HNOA. Even if your company doesn’t own vehicles, you still take on auto liability when employees drive for business reasons, including:
- Visiting clients or vendors
- Traveling to sales meetings or events
- Running business errands
- Attending offsites or conferences
- Renting a car during business travel
- Using hired transportation for work
- Early-stage businesses where employees use their own cars regularly
Whenever an employee drives within the scope of their job, liability shifts to the employer. HNOA covers third-party injury, property damage, and the legal defense that protects the company.
How Much Hired and Non-Owned Auto Coverage Do You Need?
Most choose limits that match their General Liability Insurance policy. The right amount depends on how often employees drive and how much financial risk your business could absorb if a serious auto claim occurred. Consider:
- How frequently employees drive for work
- Whether they transport passengers
- The types of roads and regions where they drive
- Your company’s size and financial profile
- Contract or landlord requirements
- The severity of auto claims in your area
- Whether you have umbrella or excess liability coverage
Smaller companies often start with limits similar to their General Liability policy. Businesses with higher driving exposure may pair HNOA with an umbrella policy for additional protection.
Learn more about how much Hired and Non-Owned Auto Insurance you need.
Common Hired and Non-Owned Auto Claims
Most HNOA claims come from everyday business activity. Even small accidents can create significant liability for a company. Below are some common scenarios where HNOA may come into play.
- Rental car accident on a business trip: An employee rents a vehicle during work travel and causes an accident. The rental company’s minimum liability coverage isn’t enough to cover all injuries and damages. HNOA covers the remaining third-party costs and legal defense.
- Accident during a work errand: An employee uses their personal car to pick up materials and rear-ends another driver. Their personal limits are too low to cover the full loss. The injured party sues the company. HNOA covers what remains after the personal policy is exhausted.
- Client injured during a ride: An employee drives a client between meetings and causes a serious accident. The client sues the company. HNOA covers legal defense and settlement costs up to the policy limit.
- Delivery-related accident: An employee uses a personal vehicle to deliver something for the business and injures a pedestrian. The personal insurer may deny coverage because the vehicle was used for delivery. HNOA protects the business, though companies built on delivery need broader coverage.
- Property damage at a client site: An employee accidentally backs into a client’s gate after a meeting. HNOA covers the business’s liability once primary coverage is applied.
How Hired and Non-Owned Auto Compares to Other Coverage Types
HNOA fills a gap that other business policies don’t address. Even companies with strong General Liability or Business Property coverage still need HNOA when employees drive vehicles that the business doesn’t own.
Read more about other types of business insurance.
Here’s what to consider when comparing HNOA to other policies:
- HNOA is the only policy that protects the business when employees drive vehicles that the company doesn’t own.
- General Liability excludes auto accidents entirely.
- Business Property and BOP policies do not include auto liability unless HNOA is added.
- Commercial Auto applies only to vehicles your business owns.
- Personal Auto Insurance protects the employee, not the company, and may deny business-related claims.
How Vouch Helps
Insurance should support your company’s momentum, not slow it down. Vouch helps businesses secure the right protection by combining expertise, access to top carriers, and a simple experience.
Access to the Right Markets
Vouch works with leading carriers across the commercial insurance landscape. Instead of steering you toward a single product, we match you with policies that fit your business model, contract requirements, and growth stage. You get more options and better alignment without doing the legwork yourself.
Advisors Who Understand Growing Companies
Risk looks different for a software platform, a research lab, a services firm, or a fintech. Vouch advisors understand these nuances and can help you choose coverage that reflects your specific exposure. That includes evaluating limits, identifying gaps, and making sure your policies hold up when customers, investors, or partners review them.
Coverage That Works Together
Businesses often buy insurance one piece at a time, which creates gaps that only show up when there’s a claim. Vouch helps you place your policies in one coordinated program, whether that includes General Liability, Business Property, Hired and Non-Owned Auto, Cyber, or Management Liability. A unified approach keeps protection clear, consistent, and scalable.
A Simple Process for Complex Needs
Insurance doesn’t need to be slow or confusing. Vouch uses efficient workflows and responsive support to help you secure coverage quickly, renew without friction, and make updates as your operations evolve. You get clarity and speed without sacrificing quality or detail.
Frequently Asked Questions
What is Hired and Non-Owned Auto Insurance?
It’s a form of auto liability coverage that protects your business when employees drive personal, rented, or hired vehicles for work. If an accident occurs, HNOA covers third-party injury, property damage, and the legal defense required to protect the company.
Does Hired and Non-Owned Auto Insurance cover damage to the employee’s car?
No. HNOA doesn’t cover damage to the vehicle being driven. Damage to a personal or rented vehicle is handled through personal auto insurance, the rental company’s damage waiver, or a separate physical damage endorsement.
Does General Liability cover accidents involving employee drivers?
No. General Liability excludes auto-related accidents. You need HNOA to protect the business when employees drive vehicles the company doesn’t own.
Is HNOA the same as commercial auto insurance?
No. Commercial auto covers vehicles your business owns or leases. HNOA applies only when employees drive vehicles that the company doesn’t own.
Do fully remote teams still need HNOA?
Yes. If employees travel for client meetings, offsites, conferences, or any business errand, auto liability shifts to the employer the moment they drive for work.
Does personal auto insurance cover employees when they drive for business?
Sometimes. Personal auto insurance may deny claims involving business use, or the limits may not be high enough to cover a serious accident. HNOA protects the company when those gaps appear.
How do companies get HNOA coverage?
Most businesses add HNOA to their General Liability or Business Owners Policy. Vouch helps you place it within a coordinated program so your coverage stays aligned and scalable.
Vouch Specialty Insurance Services, LLC (CA License #6004944) is a licensed insurance producer in states where it conducts business. A complete list of state licenses is available at vouch.us/legal/licenses. Insurance products are underwritten by various insurance carriers, not by Vouch. This material is for informational purposes only and does not create a binding contract or alter policy terms. Coverage availability, terms, and conditions vary by state and are subject to underwriting review and approval.
