When contractors think about insurance, they usually focus on general liability, workers’ compensation, commercial property, or tools and equipment. One coverage that often gets overlooked, however, is Hired & Non-Owned Auto (HNOA) coverage.

What makes many independent contractors overlook this coverage is that they don’t realize is that even if your business doesn’t own a single company vehicle, you may still have an auto liability exposure.

What Is Hired & Non-Owned Auto Coverage?

Hired & Non-Owned Auto coverage protects your business when vehicles you don’t own are used for business purposes.

It applies in two common situations:

• Hired Autos: Vehicles your business rents, leases, or borrows for work.
• Non-Owned Autos: Personal vehicles owned by employees—or even by you—that are being used for business purposes.

This coverage is designed to protect the business, not the vehicle itself.

Why Contractors Need It

Contractors are constantly on the move. Whether you’re traveling between job sites, meeting clients, picking up materials, or renting a truck for a project, driving is part of the job.

Here are a few examples where HNOA coverage could become important:

• An employee drives their personal truck to a job site and causes an accident.
• You rent a cargo van to transport equipment for a large project.
• An employee makes a supply run in their own vehicle during the workday.
• A project manager drives to meet with a client and is involved in an accident.

In each of these situations, your business could be named in a lawsuit—even if the vehicle isn’t owned by your company.

Doesn’t Personal Auto Insurance Cover This?

An employee’s personal auto policy is generally the first line of coverage for an accident involving their own vehicle. However, that doesn’t mean your business is protected.

If your company is accused of contributing to the accident or is simply named in the lawsuit because the employee was working at the time, you could still face legal costs and liability.

Hired & Non-Owned Auto coverage helps protect your business from those claims.

A Small Investment That Can Prevent a Big Loss

Many contractors assume they don’t need commercial auto coverage because they don’t own company vehicles. Unfortunately, lawsuits don’t make that distinction.

If your business relies on personal vehicles or occasionally rents vehicles to get work done, Hired & Non-Owned Auto coverage can provide valuable protection against unexpected liability.

The Bottom Line

Contractors spend a lot of time on the road, and accidents can happen when you least expect them.

If you or your employees use personal or rented vehicles for business, don’t assume your business is fully protected. Hired & Non-Owned Auto coverage is an affordable way to fill an important gap in your insurance program.

If you’re unsure whether your current policy includes this coverage, speak with your insurance agent. A quick review today could help prevent a costly surprise tomorrow.