There are more situations that make Hired/Non-Owned Coverage more important that you may think
As a business owner, it's important to ensure that you have the necessary insurance coverage to protect your business in the event of an accident or loss. One type of coverage that is often overlooked, but can be crucial in certain situations, is hired/nonowned auto coverage.
Hired/nonowned auto coverage provides protection for your business when an employee uses their own vehicle for business purposes, or when your business rents or borrows a vehicle. It can be especially important for businesses that do not own any vehicles of their own, or for those whose employees frequently use their own vehicles for work.
Here are a few reasons why business owners should consider adding hired/nonowned auto coverage to their insurance portfolio:
- Liability protection: If one of your employees gets into an accident while using their own vehicle for business purposes, your business could be held liable for any damages or injuries that result. Hired/nonowned auto coverage can help protect your business from these types of financial losses. If your employees use their own vehicles for business purposes, they may not have sufficient insurance coverage to protect both themselves and your business in the event of an accident. For example, a personal auto insurance policy may not cover damages or injuries that occur while the vehicle is being used for business. Hired/nonowned auto coverage can provide the necessary protection for your business in these situations.
- If your business relies on volunteers to help with tasks such as deliveries or transportation, hired/nonowned auto coverage can provide protection for your business if one of these volunteers gets into an accident while using their own vehicle for your business.
- Coverage for rented vehicles: If your business rents a vehicle for business purposes, the rental company's insurance may not provide sufficient coverage in the event of an accident. Hired/nonowned auto coverage can help fill in these gaps and provide additional protection for your business. If your business leases a vehicle rather than owning it outright, the leasing company's insurance may not provide the full coverage that you need. Hired/nonowned auto coverage can help fill in any gaps and provide additional protection for your business.
- Multiple Policy Discounts: Depending on your insurance provider, you may be able to receive a discount on your overall insurance premiums by bundling hired/nonowned auto coverage with other types of business insurance, such as general liability coverage.
- Peace of mind: Accidents can happen at any time, and being unprepared can be a costly and stressful experience. By having hired/nonowned auto coverage in place, you can have peace of mind knowing that your business is protected in the event of an unexpected incident.
In summary, hired/nonowned auto coverage can provide valuable protection for your business in a variety of situations, including when employees use their own vehicles for work, when volunteers use their own vehicles on behalf of your business, and when your business rents or leases a vehicle. It's always a good idea for business owners to consider adding this coverage to their insurance portfolio in order to protect their business from potential financial losses.
