Does Commercial Auto Insurance Cover Hired and Non‑Owned Vehicles?

When running a business, it’s common to use vehicles that your company doesn’t own. Understanding how commercial auto insurance applies to these situations is important to manage the financial impact of unexpected risks and help your business recover.

What Is Hired and Non-Owned Coverage?

Hired and non-owned auto coverage may sometimes be distinct components that can be added to a commercial auto insurance policy. In most cases, these components are part of the same policy endorsement, not separate.

Hired auto coverage applies to vehicles your business rents, leases or borrows for business purposes. For example, if you rent a van to purchase supplies, this coverage can pay for third-party losses if the vehicle is involved in an accident.

Non-owned auto coverage is recommended for vehicles your business doesn’t own but that are used for work, such as employee-owned cars. If an employee uses their personal vehicle to visit clients, this coverage may help financially protect your company if there’s a liability claim.

What’s Typically Included or Excluded?

Hired and non-owned auto coverage can help with third-party bodily injury and property damage caused by vehicles used for commercial purposes. However, there are important exclusions:

• It does not pay for physical damage to the vehicle itself.
• Personal errands or non-business use are typically excluded.
• It does not cover medical costs for employees, only third parties.

How We Help Businesses in Seattle, WA

Our team works closely with business owners to assess vehicle use, explain coverage options, and tailor commercial auto insurance to fit their operations. If you have questions about your current coverage or want to explore your options, contact our team today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.