Hired and non-owned auto liability (HNOA) is a type of insurance coverage that provides protection for businesses and individuals in situations where they use vehicles that they do not own for business purposes. This coverage is typically an endorsement or add-on to a commercial auto insurance policy or a general liability insurance policy.
Here's a breakdown of the two components:
1. Hired Auto Liability: This part of the coverage protects you when you rent or lease vehicles for business use. For example, if your company rents a car or a van for a work-related trip and is involved in an accident while using that rented vehicle, hired auto liability insurance would help cover the costs associated with bodily injury or property damage to others.
2. Non-Owned Auto Liability: This part of the coverage applies when employees use their personal vehicles for business-related tasks. If an employee gets into an accident while using their own car for work purposes, non-owned auto liability insurance can help cover liability claims that may arise. For instance, if an employee makes a business-related delivery using their personal vehicle and causes an accident, this coverage would help protect the business from liability.
It's important to note that HNOA insurance does not cover damage to the rented or non-owned vehicles themselves. Instead, it primarily focuses on liability protection, covering costs related to bodily injury or property damage for which you or your employees may be held responsible as a result of an accident.
Businesses that frequently rent vehicles or have employees use personal cars for work-related tasks should consider adding HNOA coverage to their insurance policies to mitigate potential liability risks. The specific terms and conditions of HNOA coverage can vary between insurance providers, so it's essential to review your policy and discuss your needs with an insurance professional to ensure you have appropriate coverage.
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