All too often, small business owners dismiss the need for hired and non-owned auto insurance because they never have their employees drive for business purposes, or they already require their employees to carry high liability limits on their vehicles. Whatever their excuses are for not signing up for an HNOA insurance plan, they clearly do not understand the true benefits of this insurance policy. To clear things up, USMC Insurance explains why businesses need hired and non-owned auto coverage in a variety of situations.
One of the most common reasons business owners believe they don’t need hired auto coverage is because they do not rent vehicles for business. Many companies can indeed get away with not renting a car throughout the entire course of their business. However, it only takes one little incident in a vehicle an employee rented to go on a sales trip to sink a company. When the settlement and legal fees are compared to the low premiums associated with hired auto insurance, having the policy as a safety net makes more sense.
In addition to hired auto insurance, small business owners also dismiss the idea of having non-owned auto coverage. The most common reason for this is because they only have employees who work in an office. They don’t believe they will ever have their employees use their own vehicles to conduct business. Unfortunately, they fail to realize that it only takes one accident during a once-in-a-while errand to jeopardize their entire business. Non-owned auto insurance could ensure they have the money needed to cover property damages, bodily injuries, and legal expenses.
Many companies that hire independent contractors and employees who spend a lot of time outside the office require them to carry high liability limits on their personal vehicles. They feel that, in this way, they are well protected. However, no liability limit could ensure a single person is fully covered. Motor vehicle accidents can often be worse than anyone would have imagined. When incidents like this happen, the victims or their family members will go after the party that has the most to give — and this often ends up being the company the independent contractor or employee was working for at the time of the accident. In moments like this, a business’s HNOA coverage could ensure the company has everything it needs to survive the settlement and legal fees.
If a business owner decides to protect their company with hired and non-owned auto insurance, they will want to work with an insurance company that can help them find the right level of coverage for their needs. USMC Insurance has the expertise to help businesses from various industries make informed decisions.