Hired & Non-Owned Auto Insurance in Saint George, Utah

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance (HNOA) covers your business for liability when employees drive vehicles your company doesn't own. This includes personal cars used for business errands and rental vehicles your team uses for work trips. Roberts Insurance agents help Saint George businesses fill this critical coverage gap that commercial auto policies don't address.

The "hired" portion covers rental vehicles your employees drive for business purposes. The "non-owned" portion covers employee personal vehicles used for work-related tasks. Neither your commercial auto policy nor your employee's personal auto insurance adequately protects your business in these situations.

This coverage acts as excess liability insurance. It kicks in when an accident happens and the underlying auto policy limits are exhausted. If an employee causes an accident while running a work errand in their personal car, their auto insurance pays first. Your HNOA policy covers the gap if damages exceed their policy limits and someone sues your business.

Most businesses add HNOA coverage as an endorsement to their general liability or commercial auto policy. This keeps your insurance simple while ensuring you're protected when employees drive vehicles you don't own.

What Does Hired & Non-Owned Auto Insurance Cover?

HNOA insurance protects your business from liability claims and lawsuits related to vehicle accidents involving hired or non-owned autos. Here's what this coverage typically includes:

• Bodily Injury Liability: Covers medical expenses, lost wages, and pain and suffering when an employee injures someone while driving for work
• Property Damage Liability: Pays for damage to other vehicles, buildings, or property when your employee is at fault
• Legal Defense Costs: Covers attorney fees, court costs, and settlement expenses if your business gets sued
• Rental Vehicle Coverage: Protects your business when employees rent cars for business trips, client visits, or work events
• Employee Personal Vehicle Use: Covers liability when employees drive their own cars to make deliveries, visit job sites, or run business errands

The coverage applies when employees use vehicles for business purposes like picking up supplies, visiting clients, traveling to job sites, attending conferences, or making deliveries. It doesn't cover vehicles your company owns or leases—that's what commercial auto insurance handles.

HNOA insurance also doesn't cover physical damage to the hired or non-owned vehicle itself. If an employee damages their personal car while working, their own auto insurance handles that claim. Your HNOA policy only addresses your business's liability to third parties.

The policy provides excess coverage over the primary auto insurance on the vehicle. If an employee causes a serious accident in their personal car during a work task, their personal auto policy pays first. Your HNOA coverage then provides additional liability protection up to your policy limits.

How Much Does Hired & Non-Owned Auto Insurance Cost?

The cost of HNOA coverage varies based on several factors specific to your business operations. Because this is typically an add-on to your existing commercial policy, it's often more affordable than you'd expect.

Your premium depends on how many employees drive for business purposes. A company with five salespeople on the road daily pays more than a business where only two managers occasionally run errands. Insurance carriers assess your exposure based on the number of drivers and how frequently they use personal or rental vehicles for work.

The type of business driving affects your rates. Employees who simply drive to client meetings present less risk than those who make frequent deliveries or visit multiple job sites daily. The nature and frequency of business driving directly impacts what you'll pay.

Your coverage limits influence premium costs. Higher liability limits provide more protection but increase your premium. Most businesses choose limits between $1 million and $2 million per occurrence. Your industry, business size, and risk tolerance help determine appropriate limits.

Your claims history matters. A clean record with no previous auto liability claims helps you secure better rates. Previous accidents involving employee vehicles can increase premiums, as carriers view your business as higher risk.

Geography plays a role in pricing. Insurance costs vary by location based on local traffic patterns, accident rates, and legal environments. Saint George businesses benefit from working with local agents who understand Utah's insurance market and can compare rates across multiple carriers.

Bundling HNOA coverage with your other business insurance often provides savings. Adding this endorsement to your existing general liability or commercial auto policy costs less than purchasing separate standalone coverage.

Do I Need Hired & Non-Owned Auto Insurance?

You need HNOA coverage if employees ever drive vehicles your business doesn't own for work purposes. This includes using personal cars for business errands or renting vehicles for work trips. Without this coverage, your business faces significant liability exposure.

Consider your daily operations. Do employees pick up supplies, visit clients, or make bank deposits using their own cars? Do team members rent vehicles when traveling to conferences or meeting with out-of-town customers? If you answered yes to either question, you need this coverage.

Many business owners mistakenly believe their commercial auto policy covers all vehicle-related liability. It doesn't. Commercial auto only covers vehicles your business owns or leases. When an employee drives their personal car or a rental vehicle for work, you have a coverage gap.

Employee personal auto insurance also won't fully protect your business. While their policy provides primary coverage, it may not be enough. If an employee causes a serious accident during a work task and damages exceed their policy limits, injured parties can sue your business. HNOA insurance protects you from these lawsuits.

Real estate agents, consultants, sales professionals, and service businesses commonly need this coverage. If your business model involves employees traveling to clients rather than clients coming to you, HNOA insurance is essential. Even office-based businesses where staff occasionally run work errands benefit from this protection.

Some clients or contracts require proof of HNOA coverage before working with you. General contractors, property management companies, and corporate clients often mandate this insurance to protect themselves from liability. Having coverage in place helps you win and maintain important business relationships.

How to Get Hired & Non-Owned Auto Insurance in Saint George

Getting HNOA coverage in Saint George starts with understanding your specific business needs. Document how many employees drive for work, how often they drive, and what types of business driving they do. This information helps insurance carriers accurately quote your coverage.

Work with an independent insurance agent familiar with Utah business insurance requirements. Independent agents represent multiple carriers, allowing them to shop your coverage across several companies to find competitive rates. Roberts Insurance has served Saint George businesses since 2011 and understands the unique needs of local companies.

Most businesses add HNOA coverage as an endorsement to their existing commercial insurance policy. This approach is cost-effective and simplifies your insurance management. Your agent can add the endorsement to your general liability policy or commercial auto policy, depending on what you already have in place.

Review your current insurance policies before adding HNOA coverage. Your agent needs to understand your existing coverage to ensure the HNOA endorsement properly coordinates with your other policies. This prevents coverage gaps and eliminates unnecessary overlaps.

Utah doesn't legally require HNOA insurance, but that doesn't mean you should skip it. The liability exposure from employee driving creates significant financial risk. A single serious accident involving an employee's personal vehicle during work hours could result in a lawsuit that threatens your business.

Ask your agent about coverage limits appropriate for your business size and industry. While minimum limits may seem adequate, higher limits provide better protection without dramatically increasing premiums. Your agent can explain the cost difference between various limit options.

Request certificates of insurance once your coverage is in place. You'll need these documents when clients or contractors request proof of insurance. Your agent can provide certificates quickly, often within hours of binding your coverage.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your Saint George business from auto liability doesn't have to be complicated or expensive. Roberts Insurance makes it easy to get the coverage you need at rates that fit your budget.

We shop multiple top-rated carriers to find the best combination of coverage and price for your specific business. Our team understands the unique insurance needs of Saint George businesses and can explain your options in plain language.

Getting a quote takes just minutes. We'll ask about your business operations, how many employees drive for work, and your current insurance coverage. Then we'll provide personalized recommendations and quotes from multiple carriers.

Ready to protect your business? Contact our team for a free quote today. We'll help you find the right coverage to keep your business protected when employees hit the road.