Companies of all sizes hit the road to conduct business across the United States. They occasionally use vehicles their company owns, but they also often use rentals, leased cars, or their employees’ cars. Gone are the days when business owners could sit back, crossing their fingers and hoping nothing would happen while out on the road. Car accidents occur all the time and can result in injuries and damages that just may sink the business if it is not adequately covered with hired and non-owned auto insurance. USMC Insurance stresses the importance of having HNOA policies.

Many small business owners fail to see the benefits of hired and non-owned auto coverage because they do not understand these terms. To clear things up, the family-owned insurance company explains that hired autos are cars and trucks that have been hired, rented, or leased for work, while non-owned autos are personal vehicles a company did not hire, rent, or lease but still uses for business purposes.

When are hired and non-owned auto insurance policies useful? The hired auto coverage will go into effect if the business rents a car for an employee on a business trip, for example, and that employee gets into a car accident while driving to a meeting. The insurance will cover any liability costs associated with the accident, including physical damage to the other person’s vehicle and bodily injuries.

Non-owned auto coverage, on the other hand, is useful when an employee is driving their own car for business purposes, such as delivering products to a customer. The driver’s personal auto insurance will provide the primary coverage. If the costs of the accident exceed their policy limit, the rest of the liability will be passed on to the employer. The non-owned auto insurance will help the company pay for property damages, bodily injuries, and any legal expenses.

Allowing employees to drive their own or rented vehicles for business reasons always comes with a great deal of risk for an employer. To reduce their risk, businesses should purchase HNOA coverage, ensure their employees have good personal auto insurance, set standards for personal vehicles used for business operations, and establish safe driving expectations. Accidents can happen at any time, so small businesses should be prepared at all times.