Running any business comes with some element of liability, and your clients should have hired non-owned auto liability. While general liability, workers’ compensation, and commercial property top the list of must-haves, some companies need to remember about the auto side of insurance. If a business owns vehicles, they must have commercial auto. But when a company occasionally rents cars or requires employees to drive personal vehicles, they need hired & non-owned auto. It gives businesses need protection if an accident happens.
Defining Hired & Non-Owned Auto
While on the job, a company has liability for any injuries an employee sustains. That also holds true if those injuries happen while driving on the job. After an accident, the employee’s personal auto insurance kicks in. If the associated injuries exceed the policy’s limits, hired & non-owned auto liability then kicks in.
This type of policy has twofold coverage. First, hired auto means any vehicle a company has rented, borrowed, or hired. Non-owned gets defined as the use of an employee’s personal vehicle.
Understanding Hired & Non-Owned Auto Liability Coverage
Many businesses may ask what kind of coverage hired and non-owned auto liability offers. Like gap insurance, hired & non-owned auto covers potential liability resulting from an auto accident. In general, this added layer of protection covers the following costs:
- Third-party vehicle damage
- Medical bills associated with injuries
- Legal defense expenses
- Settlements and court fees
Any type of accident may come with potentially fatal and severe consequences. The Centers for Disease Control and Prevention recently revealed vehicle crashes account for 22% of all work-related deaths. While a business hopes that its employees make it safely to every destination, that comes with no guarantees.
Considering that negligence may mean not getting coverage. An example of this includes intoxicated drivers. Likewise, another case would be if an employee has let insurance lapse, the business should also consider establishing safety protocols for whenever an employee drives for work. It may include conducting vehicle checks, verifying and enforcing driver eligibility, using technology to monitor driving behavior, and requiring proof of insurance.
Paying for Hired & Non-Owned Auto
Any liability case quickly adds up. In some cases, especially for small businesses, the assets available may not cover the expenses. That could lead to a business going under. Fortunately, adding additional policies to an umbrella of coverage often comes at a minimal monthly price. While every policy has differences, factors that may play into the cost include the number of employees, frequency of using a rental or personal vehicles, number of miles driven, and employee driving records.
Although it depends on the carrier and the above factors, most policies range between $130 and $170 monthly. If a business owns vehicles and has an existing commercial auto policy, they may have the option to add hired & non-owned auto insurance at a fraction of the cost.
A business potentially faces situations, especially when it comes to employees driving, that require purchasing a hefty amount of money out of pocket. Adding hired & non-owned auto fills in the gap for added peace of mind.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.