Hired and Non-Owned Auto Insurance: The Overlooked Coverage Small Businesses Need

Ed Grasso
Mon, 08 Dec 2025 14:40:28 +0000
All Articles, Business Insurance 101

I run a small business, but because I work from a desk, I don’t need a separate work vehicle. I don’t drive to meetings, inspect sites, or set up client events.

But many small business owners don’t have that luxury. A consultant could drive their own car to a client meeting, an event planner might rent a van to transport equipment, or a logistics broker may need to borrow a truck for a site check.

If there’s an accident on one of those trips, the business can be named in a lawsuit — and general liability coverage typically won’t help. Hired and non-owned auto insurance can help fill that gap.

What This Endorsement Is

Hired and non-owned auto (HNOA) insurance is generally an endorsement that can be added to general liability coverage, but it can be purchased as a stand-alone policy. It provides additional liability protection if someone is driving a personal, rented, or leased vehicle for business purposes and causes property damage or bodily injury to others. However, it doesn’t cover physical damage to the vehicle being driven, even if it’s the employee’s car or a rented van.

HNOA helps protect your company from lawsuits and legal costs that result from business vehicle use and aren’t covered under general liability insurance. It’s especially relevant for professionals like event planners, consultants, and logistics managers. They regularly drive to meetings and events for clients, increasing the risk of an accident. This coverage helps ensure that a fender bender or a smashed mailbox doesn’t derail your business.

Why It Matters

Car accidents can cause more than dents. Unfortunately, they also create liability for your business. If you’re a consultant driving to a client site and rear-end another driver, or an event planner whose employee scraped a building with a rented truck during set-up, you may face medical bills, lawsuits, or property damage costs.

Unfortunately, these expenses don’t often stop at the driver. Lawsuit costs and damages can also land on the business. Don’t assume personal auto insurance or a rental company’s coverage will handle everything, because those policies weren’t created to cover your business needs.

If you don’t have a hired and non-owned auto endorsement, exposure can fall on you, impacting your finances and your company’s reputation. That’s why for many event, consulting, and logistics business owners, HNOA coverage is a necessity, not a nice-to-have policy.

What’s Covered vs. What’s Not

Every business owner knows the unexpected is always just around the corner. And surprises are often more expensive than you think. So, as with any insurance policy, it’s important to know what hired and non-owned auto insurance will and won’t cover when you need it.

Covered:

Bodily injury or property damage to third parties caused by employees using personal or other non-owned vehicles for work

Accidents that happen while leasing or renting a vehicle for business purposes

Legal defense costs, including attorney fees and settlements that are tied to covered claims

Not Covered:

Physical damage to the employee’s personal car or a rented or leased vehicle

Normal wear and tear, poor maintenance, or intentional damage

Accidents that involve vehicles owned by the company; those require commercial auto insurance coverage

Let’s say your employee drives a rented truck to an event and bumps into a fence. HNOA can help pay for damages and any legal expenses, but it won’t cover repair costs for the truck.

Cost and Value

Hired and non-owned auto coverage is one of the more affordable ways to help protect your business. The annual cost is often modest compared to the cost of a single accident, which could trigger thousands in medical bills, legal fees, and property damage claims.

For businesses that require frequent driving and client visits, this endorsement can provide additional coverage at a lower cost than a full commercial auto insurance policy. If you’re weighing the options between the two, consider running the numbers and coverage to see which works best for your line of work.

How to Add It

Adding hired and non-owned auto coverage is often straightforward. Most insurers offer it as an endorsement to a general liability policy, so you don’t need to purchase a separate policy. Insurers will often help you adjust coverage to match how frequently your business relies on rented or personal vehicles, so it’s tailored to your needs. That helps whether you only rent a van a few times a year or your staff regularly uses their personal cars for errands.

To get a quote, contact your broker and ask them how much it would cost to include the endorsement in your renewal or new policy.

Protect Your Business on the Road

One of the most overlooked risks small businesses face is an accident involving vehicles the company doesn’t own. Hired and non-owned auto insurance can help protect your finances and reputation from claims that catch a lot of business owners off guard.

Speak with an insurance professional about adding this endorsement so you can have safeguards in place before you or your employees hit the road. Compare quotes here today.