What is a Hired and Non-Owned Automobile Liability Add-On for a Business Owners Policy?
Hired and non-owned automobile liability add-on coverage for a business owners policy (BOP) or a general liability insurance policy provides liability protection when you or an employee is driving a rented, hired, or borrowed vehicle for business purposes. It does not, however, cover damage to the vehicle. This type of coverage is needed if, for instance, employees make deliveries for the business using their own vehicle.
Another example is that many businesses rent trucks when they need to make large deliveries. If your employee is driving a rented truck, causes an accident, and the other driver involved in the collision sues your company for the cost of their medical bills, a hired and non-owned auto liability add-on can protect you.
Does an Employee’s Personal Auto Policy Cover Them While They Drive for Work?
Personal auto insurance may not cover incidents that occur while driving the vehicle for activities like deliveries or transporting passengers for a fee. A hired and non-owned auto liability add-on is crucial in this type of scenario.
The Benefit of Adding Vehicle Coverage to Property and Liability Insurance
A business owners policy is also called property and liability insurance. Adding hired and non-owned auto liability coverage to your policy can be to your advantage, as it means you don’t have to have a separate commercial auto policy for this purpose. More coverage with fewer policies—it’s a true win-win for your business. Plus, it may be more cost-effective to take this approach.
Does a Hired and Non-Owned Auto Liability Add-On Protect Drivers at all Times?
It’s important to be aware that a hired and non-owned auto coverage add-on only applies when a vehicle is being driven for work purposes. If a vehicle is being used to commute to or from work or to run personal errands, for example, the policy does not cover any incidents that occur.
My Employees Drive Company-Owned Vehicles. Are They Covered by My Business Owners Policy?
Hired and non-owned auto liability add-on coverage for a business owners policy is specifically for vehicles that are not owned by your business. If your company owns vehicles that are used for business purposes, you need commercial auto insurance. It can cover a wide range of vehicles, including:
A commercial auto policy includes:
Other Property Damage/Liability Policy Add-Ons
In addition to hired and non-owned automobile liability, you can enhance your property damage/liability policy with other add-ons as well. This includes:
Does it Matter Where I Purchase My Hired and Non-Owned Automobile Liability Add-On for My Business Owners Policy?
Many insurance companies can provide a hired and non-owned auto liability add-on for a business owners policy. However, thanks to our direct-to-you approach, biBERK can provide insurance for up to 20% less than other insurance companies. Plus, we’re a business insurance company with reassuring credentials. We're part of Warren Buffett's Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020.
In addition, we enable you to get a fast, free quote on our website. It takes just minutes, and so does buying a hired auto policy add-on online or reporting a claim.
So, yes, it matters where you get hired and non-owned automobile liability insurance for your business. You can trust biBERK for business insurance made simple!