Hired & Non-Owned Auto: A Silent Liability

Many business owners are surprised to learn that their company may be exposed to auto liability—even if the business doesn’t own any vehicles. This risk often flies under the radar because it involves employees using their personal vehicles for work-related tasks.

The Risk Scenario

Imagine an employee running a routine errand during the workday: making a bank deposit, picking up supplies, or delivering paperwork. On the way, the employee causes an accident that results in serious injuries or property damage.

The employee’s personal auto policy will respond first, but many personal policies carry minimum liability limits. In a serious accident, those limits can be exhausted quickly—leaving injured parties looking elsewhere for compensation.

Where the Coverage Gap Appears

When an accident occurs during the course of employment, the business itself can be pulled into the claim. Lawsuits often allege that the employee was acting on behalf of the company at the time of the accident, making the business vicariously liable.

Without hired and non-owned auto liability coverage, your business may be responsible for damages that exceed the employee’s personal policy limits. This exposure can lead to significant out-of-pocket costs, legal fees, and reputational damage.

What makes this risk particularly dangerous is how common it is. Many businesses don’t consider everyday errands or occasional driving to be an auto exposure—until a claim occurs.

The Fix: Simple and Affordable Protection

Hired and non-owned auto liability coverage is designed specifically to address this gap. It provides liability protection for vehicles your business doesn’t own but are used in connection with business operations.

In many cases, this coverage is surprisingly affordable, especially when compared to the potential cost of a serious auto liability claim. It can often be added as an endorsement to an existing policy.