Commercial auto insurance is not just for big corporations. In fact, small businesses are just as at risk of a car accident or incident involving a borrowed or hired vehicle. The only difference is that an independently owned business may not survive the costs associated with the accident. For this reason, business owners should insure their drivers and vehicles, but they must also note that a personal auto insurance plan will not be enough coverage. USMC Insurance shares why small businesses need to have commercial hired and non-owned auto insurance.
Many small business owners erroneously believe their personal auto insurance coverage is enough to protect them in the event they are in an accident while driving around for business purposes — whether to deliver goods or meet with clients. However, these policies often exclude business driving, so the business owner would be personally responsible for any expenses incurred. This applies whether they are driving their car or having an employee use their own vehicle for business purposes. It’s also important to note that many personal auto insurance limits are so small that the entire expenses of a severe accident may not be covered.
It’s especially critical for small businesses to have hired and non-owned auto insurance (HNOA) when driving vehicles for work that they do not own. These vehicles range from rented cars or trucks to employee vehicles. If the owner or an employee were to get into an accident, the HNOA insurance would cover the costs of vehicle repairs and medical bills for the other party. This policy can adequately protect a business in the event of an accident with a rental or employee-owned car.
Business owners can purchase commercial non-owner auto insurance as a standalone policy or add it to their small business liability insurance. For more information about general liability or HNOA policies, contact USMC Insurance.
About USMC Insurance
Founded in 2012, USMC Insurance is a managing general agent (MGA) providing both specialized and traditional property and casualty insurance. This family-owned company draws on over 100 years of combined experience to offer business insurance programs to brokers and agents across the nation, with a special interest in underserved niche markets.