If your employees ever drive personal or rented vehicles for work, your business takes on auto liability. Hired and Non-Owned Auto Insurance (HNOA) is what protects you when something goes wrong on the road. Naturally, the big question most companies ask is, “How much coverage do we actually need?”

The answer depends on how your team drives, how much risk you’re comfortable with, and what your contracts require. This guide walks you through the factors that matter and helps you make a confident, informed decision.

Key Takeaways

• Your limit should reflect how often and how far employees drive for work.
• More driving, frequent client visits, and regional travel usually mean you need higher limits.
• Customer, partner, and landlord contracts may require minimum auto liability limits that apply to HNOA.
• Many companies align HNOA limits with their General Liability policy.
• As driving needs or contract requirements grow, many businesses add umbrella coverage for extra protection.

What Determines How Much Hired and Non-Owned Auto Insurance You Need?

Choosing the right limit starts with understanding your real exposure. Even a short trip to drop something off can create meaningful liability if an accident happens. Insurers and advisors typically focus on a few key factors:

• How often employees drive for work: Occasional driving creates lower exposure. Regular driving for meetings, vendor visits, or site work increases the chance of a claim.
• How far and where employees drive: Short, local trips tend to involve less risk. Longer trips, highway travel, or driving in congested areas increase exposure simply because employees spend more time on the road.
• Whether employees drive with passengers: Driving clients, partners, or other employees raises the severity potential of a claim, which often pushes companies toward higher limits.
• Your company’s revenue, assets, and risk tolerance: Some companies choose higher limits because they have more to protect. Others prefer a more conservative approach but still want enough coverage for the most likely loss scenarios.
• Contract requirements: Customer agreements, partner arrangements, and even commercial leases may set minimum auto liability requirements your HNOA policy must meet.
• Whether you have umbrella or excess liability coverage: Umbrella policies add protection above your HNOA limits. Companies often add umbrella coverage as their operations grow or when contracts require higher overall capacity.

How to Evaluate Your Company’s Driving Exposure

A practical way to assess exposure is to look closely at how your team actually drives for work. Consider:

• Occasional vs regular driving: A few trips a year create limited exposure. Weekly or daily driving, especially for in-person operations, significantly increases it.
• Local travel vs regional or national travel: Local travel is predictable and usually lower risk. Regional or national travel introduces longer distances, unfamiliar roads, and more complex driving environments.
• Trip purpose and severity potential: Running a simple errand carries a different level of risk than transporting clients or navigating high-traffic business corridors.
• Industry patterns: Some industries naturally drive more. If your operations rely on field work, multi-location coordination, or onsite visits, you may need higher limits to match that activity.

How Hired and Non-Owned Auto Coverage Limits Work

Understanding how limits function makes it easier to choose the right amount of protection.

• Per occurrence limits: The maximum the insurer pays for a single accident. Higher limits provide more protection for severe claims involving injury or major property damage.
• Aggregate limits: The maximum the policy will pay across the entire policy period. Companies with multiple drivers or frequent travel often choose higher aggregates.
• Why higher limits matter: Higher limits give your business more room to absorb serious claims without financial strain. They help ensure one accident doesn’t disrupt your operations.
• When to consider umbrella or excess liability coverage: Umbrella coverage adds another layer of protection on top of your primary limits. It’s especially useful when your exposure grows or contracts require more liability capacity.

Exposure Cheat Sheet

While every company is different, most fall into one of these broad categories:

• Low exposure: Teams that rarely drive and work mostly on-site or remotely. Baseline limits often fit their needs.
• Moderate exposure: Companies with regular travel to clients, partners, vendors, or job sites. Higher limits are usually appropriate.
• High exposure: Organizations with frequent travel, long-distance driving, or recurring onsite work. These companies often choose higher limits and may add umbrella coverage.

When Contracts Require Higher Limits

Many businesses choose their limits based on what external partners require, including:

• Customer requirements: Enterprise customers and regulated industries often specify minimum auto liability limits.
• Vendor and partner requirements: Operational partners may require proof of auto liability coverage, especially if your team visits their facilities.
• Landlord requirements: Some commercial leases include auto liability language tied to your certificate of insurance.

When a contract sets a required limit, your Hired and Non-Owned Auto policy has to meet it.

How Vouch Helps You Choose the Right Hired and Non-Owned Auto Limits

Choosing limits is easier when you have support from advisors who understand how driving exposure shows up across different business types. Vouch helps companies evaluate their needs and build a coordinated insurance program that keeps limits aligned and avoids gaps.

Working with Vouch gives you:

• Advisors who understand how different industries drive for work
• Guidance on limit selection that reflects your exposure, contracts, and goals
• Access to top carriers to source the right policy structure
• A coordinated program that keeps Hired and Non-Owned Auto aligned with General Liability, Business Property, Cyber, and Management Liability
• A simple process for adjusting limits as your business grows or your requirements change

This helps ensure your coverage stays relevant and dependable over time.

Choosing the Right Amount of Hired and Non-Owned Auto Coverage

Choosing the right amount of Hired and Non-Owned Auto Insurance starts with understanding how your team uses vehicles for work and how much risk your business is willing to carry. Even limited driving can create real liability, which is why it’s helpful to understand your driving patterns, your contracts, and the level of protection that feels appropriate for your operations.

As your business grows or your travel needs evolve, revisiting your limits helps keep your coverage aligned with the way you work.

Frequently Asked Questions

Are higher limits always necessary?

Not always. They matter most when employees drive often, drive long distances, or drive with passengers.

Do remote teams still need meaningful limits?

Yes. Remote teams still travel for meetings, events, and vendor visits. Any work-related driving creates exposure.

Should HNOA limits match General Liability limits?

Many companies choose to align them for consistency across their insurance program.

How often should we revisit our limits?

At least once a year, or whenever your business expands, takes on new contracts, or changes how it operates.

Does umbrella coverage reduce how much HNOA we need?

Umbrella coverage increases your total protection, but you still need strong primary limits that meet contractual and operational requirements.

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.