What is hired and non-owned auto and does my Georgia business need it?

Hired and non-owned auto coverage, often shortened to HNOA, protects your Georgia business when an employee drives a vehicle for work that your company does not own. Most small businesses do need it, because the gap it fills is easy to overlook until a claim hits.

The coverage has two parts. “Hired auto” applies to vehicles your business rents, leases, or borrows, such as a rental truck you pick up for a job. “Non-owned auto” applies to personal vehicles employees use for business errands, like an employee running to the bank, picking up supplies, or driving to a client meeting in their own car.

Here is why this matters. If your employee causes a serious crash while running a work errand in their personal car, the injured party can sue your business. The employee’s personal auto policy may pay first, but personal limits are often low and personal insurers sometimes deny claims that happen during business use. Your company is then exposed for the rest.

Example: a Georgia marketing firm sends an employee to drop off materials at a client site in her own sedan. She runs a red light and injures another driver, who racks up $180,000 in medical bills and sues the firm. Her personal policy pays its $50,000 limit, leaving $130,000 the business must cover. With HNOA tied to a $1 million liability limit, that gap is covered.

Almost any Georgia business with employees who drive for work, even occasionally, should carry HNOA. It is inexpensive and is frequently added to a business owners policy or general liability policy. Learn more about commercial auto insurance or pair it with a business owners policy. To see whether your current coverage closes this gap, request a free coverage review.