Hired & Non-Owned Auto Insurance

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance protects your business from liability claims when employees use vehicles you don't own for business purposes. This includes employee personal vehicles, rental cars, or borrowed vehicles used for work-related tasks. Norton Insurance of Florida's insurance agents help you find the right coverage to protect your business from these often-overlooked risks.

This coverage fills a critical gap that commercial auto insurance doesn't address. If you don't own business vehicles but your employees drive for work, you're exposed to liability risks. When an employee gets into an accident while running a business errand in their personal car, your business can be held liable for damages and injuries—even though you don't own the vehicle.

Hired auto coverage protects your business when you rent or lease vehicles temporarily. Non-owned auto coverage protects you when employees use their personal vehicles for business purposes. Most businesses need both types of coverage, which is why they're typically bundled together as hired and non-owned auto insurance (HNOA).

This coverage is essential for businesses without company vehicles but with employees who drive for work. It protects against claims that exceed the limits of the driver's personal auto policy, providing an additional layer of liability protection for your business operations.

What Does Hired & Non-Owned Auto Insurance Cover?

Hired and non-owned auto insurance provides liability coverage when employees drive vehicles your business doesn't own. Here's what this coverage protects:

Non-Owned Auto Coverage

• Employee Personal Vehicles: When employees use their own cars for business errands, deliveries, client visits, or traveling between job sites
• Bodily Injury Liability: Medical expenses, lost wages, and legal costs if an employee injures someone while driving for business purposes
• Property Damage Liability: Damage to other vehicles or property caused by an employee driving their personal vehicle for work
• Legal Defense Costs: Attorney fees and court costs if your business is sued following an accident in a non-owned vehicle
• Excess Coverage: Protection when damages exceed the limits of the employee's personal auto insurance policy

Hired Auto Coverage

• Rental Vehicles: Cars, trucks, or vans your business rents for short-term use, including daily or weekly rentals
• Leased Vehicles: Short-term vehicle leases (typically less than six months) used for business operations
• Borrowed Vehicles: Vehicles borrowed from clients, vendors, or other third parties for business use
• Substitute Vehicles: Temporary replacements while your regular business vehicles are being repaired

What This Coverage Doesn't Include

It's important to understand the limitations of hired and non-owned auto coverage. This policy doesn't cover physical damage to hired or non-owned vehicles—only liability to third parties. It also doesn't replace the need for commercial auto insurance if you own business vehicles. Additionally, it won't cover employees during their regular commute to and from work, only when they're driving for business purposes.

How Much Does Hired & Non-Owned Auto Insurance Cost?

The cost of hired and non-owned auto insurance varies based on several factors specific to your business operations. Because this coverage is typically an add-on to your general liability or business owner's policy, it's often more affordable than you might expect.

The number of employees who drive for business significantly impacts your premium. A small consulting firm with three employees who occasionally visit clients will pay considerably less than a real estate agency with twenty agents constantly driving to properties. The frequency and nature of business driving also matters—occasional errands cost less to insure than daily client visits.

Your industry and business operations affect pricing as well. Some industries naturally involve more driving risk than others. For example, a home inspection business where employees drive to multiple properties daily will have different rates than an office-based business where employees occasionally drive to lunch meetings or the post office.

Coverage limits you select directly influence your premium. Higher liability limits provide more protection but increase your cost. Most businesses choose limits between $1 million and $2 million, balancing adequate protection with budget considerations. Your insurance agent can help you determine appropriate limits based on your specific risk exposure.

Your claims history and employee driving records also factor into pricing. Businesses with clean claims histories typically qualify for better rates. Some insurers also consider the driving records of employees who regularly drive for business, especially in higher-risk industries.

As an independent agency, we shop multiple carriers to find you competitive rates. The cost difference between carriers can be significant, which is why comparing quotes matters. We help you understand what drives your premium and identify opportunities to reduce costs without sacrificing necessary protection.

Do I Need Hired & Non-Owned Auto Insurance?

If employees ever drive for business purposes—even occasionally—you likely need this coverage. Many business owners assume their commercial general liability policy or employees' personal auto insurance provides adequate protection. Unfortunately, significant gaps often exist.

You need this coverage if employees use personal vehicles to run business errands, visit clients, make deliveries, travel between job sites, or attend off-site meetings. Even businesses without company vehicles face substantial liability exposure. When an employee causes an accident while driving for work, your business can be held liable for damages that exceed their personal auto policy limits.

Businesses that frequently rent vehicles for business travel, conferences, or temporary projects also need hired auto coverage. The rental company's insurance typically provides minimal protection, leaving your business exposed to significant liability. Your hired auto coverage fills this gap, protecting you when employees rent cars for business purposes.

Service-based businesses often have the greatest need for this coverage. Real estate agents, consultants, home inspectors, sales representatives, and contractors frequently drive to client locations. Even office-based businesses need coverage if employees occasionally drive to the bank, post office, or lunch meetings where business is discussed.

Some industries face mandatory insurance requirements that include hired and non-owned coverage. Even when not legally required, many clients and contracts require proof of this coverage before engaging your services. General contractors often require subcontractors to carry this coverage, and commercial leases may mandate it for businesses in their properties.

The relatively low cost of this coverage makes it an easy decision for most businesses. The potential liability from a single serious accident far exceeds the annual premium. Protecting your business from this exposure is simply good risk management.

How to Get Hired & Non-Owned Auto Insurance in Florida

Getting the right hired and non-owned auto coverage for your Florida business starts with understanding your specific risk exposure. Florida's business environment creates unique considerations—from tourist-heavy areas with congested traffic to employees traveling between multiple job sites across the state.

Florida doesn't specifically mandate hired and non-owned auto insurance for most businesses, but that doesn't mean you should skip it. The state's high percentage of uninsured motorists increases your risk when employees drive for business. If an uninsured driver hits your employee while they're on a business errand, your business could face significant liability claims.

Start by evaluating how employees use vehicles for your business. Document who drives for work, how often, and for what purposes. This information helps your insurance agent recommend appropriate coverage limits. Consider whether you regularly rent vehicles, how many employees drive personal cars for business, and what types of driving they do.

As an independent insurance agency with over forty years of Florida experience, we work with more than 100 top-rated carriers. This gives us the ability to compare coverage options and find you the best rates. Many businesses add hired and non-owned coverage to their existing general liability or business owner's policy, making it a simple and cost-effective endorsement.

We help you understand exactly what you're buying and ensure you have appropriate coverage limits. Our agents can also explain how this coverage works alongside your other business insurance policies, creating comprehensive protection without unnecessary overlap. We've helped thousands of Florida businesses navigate these coverage decisions since the 1980s.

The process is straightforward. We review your business operations, recommend appropriate coverage limits, compare quotes from multiple carriers, and help you select the policy that best fits your needs and budget. We also review your coverage regularly to ensure it continues to meet your evolving business needs.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Don't leave your business exposed to liability risks from employee driving. Hired and non-owned auto insurance provides essential protection at an affordable cost, filling coverage gaps that could otherwise threaten your business.

Norton Insurance of Florida has protected Emerald Coast businesses for over forty years. As an independent agency, we shop more than 100 carriers to find you the best coverage and rates. Our agents understand Florida's unique business risks and can recommend coverage that truly fits your operations.

Ready to protect your business? Contact our team for a free quote today. We'll assess your specific needs, compare options from multiple carriers, and help you secure the right coverage. Call us at 850-244-1574 or visit our offices in Fort Walton Beach or Destin. You can also request a quote online, and we'll do the rate shopping for you.

With decades of knowledge and experience protecting Florida businesses, we're here to ensure you have the coverage you need when it matters most. Get your free quote today and gain peace of mind knowing your business is properly protected.