Coverage Detail
Hired and Non-Owned Auto Insurance
Coverage that can help address liability exposures involving vehicles a business rents, hires, borrows or does not own, when used for business purposes.
What hired and non-owned auto insurance is
Hired and non-owned auto insurance can help address liability exposures involving vehicles a business rents, hires, borrows or does not own, depending on the policy. It generally has two parts. Hired auto relates to vehicles rented, leased, hired or borrowed for business use. Non-owned auto relates to vehicles employees own personally but use for company business.
This coverage is commonly relevant even for businesses without a company fleet, since it is built around how a vehicle is used rather than who holds the title.
Common business-use examples
- Client visits
- Deliveries
- Errands and supply runs
- Off-site meetings
- Employee travel between locations
Coverage
Hired auto and non-owned auto, explained separately
Hired auto generally addresses liability connected to vehicles your business rents, leases, hires or borrows for business use, such as a rental van for a project or an event.
Non-owned auto generally addresses liability connected to vehicles employees own personally and use for company business, such as making a delivery or driving to a client meeting in their own car.
Coverage, limits and exclusions vary by carrier and policy, and this coverage typically works alongside rather than in place of any commercial auto policy your business already carries.
Risk
Who typically needs this coverage
Businesses that do not own a fleet but regularly send employees out for client visits, deliveries or errands often carry a gap in auto liability protection, since a personal auto policy is written around personal use and may not respond the same way to a business-related accident. Businesses that occasionally rent vehicles for projects, moves or events face a similar gap for the rental period. This coverage is designed to sit alongside your other business insurance and help address those specific situations.
Valoridge
How Valoridge helps
Valoridge reviews how your team actually uses vehicles for business, including rentals, errands, deliveries and employee driving, then helps identify whether hired and non-owned auto coverage fits alongside your existing commercial auto or general liability coverage. We help compare available options and assist with policy service after coverage is placed.
Explore
Related insurance coverages
This coverage is commonly reviewed alongside other auto and liability protection.
Commercial Auto Insurance
Coverage designed for vehicles used for business purposes, including company cars, vans, pickups and certain commercial trucks.
Explore page
General Liability Insurance
Help protect your business against covered third-party bodily injury, property damage and certain personal or advertising injury claims.
Explore pageCommercial Umbrella Insurance
Additional liability limits that may sit above certain underlying business liability policies, subject to policy terms.
Explore pageFrequently Asked
Questions business owners ask
Straightforward answers about hired and non-owned auto coverage, tied to policy terms and insurer requirements.
What is hired and non-owned auto insurance?
Hired and non-owned auto insurance can help address liability exposures involving vehicles a business rents, hires, borrows or does not own, depending on the policy. It is generally split into two parts: hired auto, for vehicles the business rents or borrows, and non-owned auto, for vehicles employees own and use for business purposes.
Do I need this coverage if my business does not own any vehicles?
Many businesses without a company fleet still have employees who drive personal vehicles for work, or occasionally rent vehicles for a project or event. Hired and non-owned auto coverage is commonly evaluated in exactly that situation.
Does my employee’s personal auto insurance cover business use?
Personal auto policies are written around personal use and may exclude or limit coverage for business-related driving. This is one of the gaps hired and non-owned auto coverage is intended to help address, subject to the applicable policy.
What is the difference between hired auto and non-owned auto?
Hired auto generally relates to vehicles the business rents, leases or borrows for business use. Non-owned auto generally relates to vehicles employees own personally but use for company business, such as client visits or errands.
Does hired and non-owned auto cover physical damage to a rental vehicle?
This coverage is typically focused on liability exposure rather than physical damage to the hired vehicle itself. Physical damage protection for a rented vehicle is usually a separate consideration, subject to the policy and rental agreement.
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