COMMERCIAL INSURANCE
Hired and Non-Owned Auto Insurance
When your employees drive rented vehicles or their own cars for work, your business is on the hook if they cause an accident. Hired and non-owned auto, or HNOA, closes that gap. It is one of the most affordable commercial coverages, and one of the most overlooked.
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- Non-owned Auto Insurance
Quick Answer: Hired and non-owned auto insurance covers your business's liability when an employee drives a vehicle the company does not own, either a rented or hired vehicle or their own personal car, for business purposes. It pays for injuries and property damage your business becomes liable for after an at-fault accident. It is usually inexpensive, often added to a general liability policy or business owners policy for a small additional premium, and it does not cover the vehicle itself.
Here is the gap most business owners never see coming. When an employee runs to the bank, picks up supplies, or makes a delivery in their own car or a rented van, your business can be held liable if they cause an accident, a legal principle called vicarious liability. The employee's personal auto policy often excludes business use, and your commercial auto policy only covers vehicles the business owns. That leaves a hole that one serious accident can drive straight through. Hired and non-owned auto fills it. As an independent brokerage, Pro Insurance Group makes sure this inexpensive but critical coverage is in place before you need it.
Hired vs Non-Owned: Two Coverages, One Policy
Hired Auto
Covers your business's liability for vehicles you rent, lease, or borrow for company use, such as a rented box truck for a busy week or a leased van for a job. It applies while that vehicle is being used for your business.
Non-Owned Auto
Covers your business's liability when employees use their own personal vehicles for work errands and tasks. It protects the company, not the employee's car, and sits behind the employee's own policy.
Most businesses with any driving exposure need both, which is why they are almost always written together as a single hired and non-owned auto coverage.
What HNOA Covers
Bodily Injury Liability
Medical costs, legal fees, and damages when an employee driving a non-owned or hired vehicle injures another person in an at-fault accident.
Property Damage Liability
Damage your employee causes to another person's vehicle or property while driving a rented or personal vehicle for business.
Legal Defense Costs
Attorney fees and court costs if your business is sued over an accident involving a vehicle it does not own.
Supplementary Payments
Additional covered costs such as bail bonds or lost earnings tied to a covered accident and the resulting claim.
Important: HNOA is liability-only. It does not pay to repair the hired or personal vehicle itself, that falls to the rental company's policy or the employee's own auto coverage. For higher liability limits on large contracts, a commercial umbrella can sit above it.
Which Businesses Need HNOA
Any business whose employees ever drive for work, even occasionally, in a vehicle the company does not own. That is far more businesses than realize it. See coverage built for your industry:
HNOA vs Commercial Auto: Which Do You Need?
It comes down to who owns the vehicle. If your business owns titled vehicles, those belong on a commercial auto policy, which covers the vehicles themselves plus liability. If your employees drive rented vehicles or their own cars for work, you need hired and non-owned auto for the liability the business carries.
Many businesses need both: commercial auto for the company trucks and HNOA for the gaps when an employee runs an errand in their own car. We map your actual driving exposure and make sure nothing falls between the two policies. Note that HNOA is also distinct from personal auto insurance, which covers your employee as an individual, not your business.
What HNOA Costs
| How It Is Purchased | Best For | Typical Cost |
|---|---|---|
| Endorsement to GL or BOP | Occasional driving exposure | $100 to $300 / yr |
| Standalone policy | Higher or frequent exposure | $250 to $750 / yr |
| Added to commercial auto | Businesses with owned vehicles too | Small add-on premium |
Ranges are illustrative. HNOA is one of the most affordable commercial coverages because it is liability-only. Actual cost depends on the number of drivers, how often they drive for work, and your limits. Request a quote for a firm number.
What Our Clients Say
Why Businesses Choose Pro Insurance Group
We Find the Gaps
We map your real driving exposure so nothing falls between your auto, HNOA, and liability policies.
We Shop 20+ Carriers
Independent means we compare the market and bundle HNOA where it costs you the least.
Same-Day COIs
Certificates issued fast when a client or rental company needs proof of coverage.
One Point of Contact
A dedicated advisor who knows your business, not a call center that starts over each time.
Hired and Non-Owned Auto FAQ
What is hired and non-owned auto insurance?
It is commercial coverage that protects your business from liability when an employee drives a vehicle the company does not own for business purposes, either a rented or hired vehicle or the employee's own personal car. It covers the injuries and property damage your business becomes liable for, but not the vehicle itself.
What is the difference between hired and non-owned auto?
Hired auto covers vehicles your business rents, leases, or borrows for company use. Non-owned auto covers employees using their own personal vehicles for work. They address different situations but are almost always written together as one coverage, because most businesses have both exposures.
My employees use their own cars. Doesn't their personal insurance cover it?
Only up to their own limits, and many personal auto policies exclude or limit business use entirely. Even when the employee's policy responds, your business can still be sued directly under vicarious liability, and that claim is not covered by their personal policy. Non-owned auto protects the business itself, which the employee's coverage does not.
Do I need it if I already have commercial auto?
Possibly, yes. Commercial auto covers the vehicles your business owns. The moment an employee drives a rental or their own car for work, you are outside that policy. Many businesses carry both, and HNOA is usually a small add-on to a commercial auto policy that closes the gap.
Does HNOA pay to repair the vehicle?
No. HNOA is liability-only. It pays for injuries and damage your business causes to others, not for damage to the rented vehicle or the employee's personal car. Repairs to those vehicles fall to the rental company's coverage or the employee's own auto policy.
How much does hired and non-owned auto cost?
It is one of the most affordable commercial coverages because it is liability-only. Added as an endorsement to a general liability or business owners policy, it often runs $100 to $300 per year. A standalone policy or higher exposure runs more. Your cost depends on the number of drivers and how often they drive for work.
Close the Gap Before You Need To
Hired and non-owned auto is inexpensive, and the exposure it covers is one most businesses do not know they have. Let us check your coverage and quote it in minutes.
Get My Quote Call 833-776-4671Reviewed by Neal Fusco, VP Commercial Lines
Neal leads commercial and specialty coverage at Pro Insurance Group, helping businesses across Illinois and 40-plus states secure the right protection at competitive rates.