What Is Commercial Auto for Hire Insurance?

Commercial auto for hire insurance, often referred to as Hired and Non-Owned Auto (HNOA) insurance, covers liability expenses arising from accidents involving vehicles your business uses but does not own. This includes vehicles that are rented, leased, or borrowed, as well as personal vehicles owned by employees when used for business activities. For instance, if an employee uses their personal car to deliver goods and causes an accident, HNOA insurance can help cover the resulting liability costs.

Key Coverages

A comprehensive commercial auto for hire insurance policy typically includes:

• Liability Coverage: Protects against legal expenses and damages if a hired or non-owned vehicle is involved in an accident causing bodily injury or property damage.
• Physical Damage Coverage: Optional coverage that pays for repairs to rented or leased vehicles damaged during business use. This is often referred to as Hired Auto Physical Damage coverage.
• Medical Payments or Personal Injury Protection: Covers medical expenses for the driver and passengers in the hired or non-owned vehicle, regardless of fault.
• Uninsured/Underinsured Motorist Coverage: Provides protection if the at-fault party in an accident lacks sufficient insurance.

Who Needs This Coverage?

Businesses should consider commercial auto for hire insurance if they:

• Rent or lease vehicles for business purposes.
• Allow or require employees to use personal vehicles for work-related tasks.
• Use vehicles not owned by the company to conduct business operations.

It’s important to note that HNOA insurance does not cover physical damage to the non-owned vehicle itself; it primarily addresses liability concerns.