Hired/Non-Owned Auto Coverage

Hired/Non-Owned Auto Coverage

August 12, 2019
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Happy Monday to all the business owners and insurance decision-makers out there!

Just wanted to take a minute of your time to discuss a very real exposure that most businesses face today. 

Just a quick scenario to set the stage…Company XYZ sends out their admin assistant (let’s call him Rick) to grab come some office supplies on Monday morning. Rick takes off in his personal auto, but does not look both ways and collides with a 3rd party vehicle driving lawfully down the road. The third party’s vehicle is damaged and the driver sustains significant injuries that require medical treatment. 

The lawsuit will not only name Rick, but also Company XYZ that sent him on the errand to grab supplies. The standard General Liability policy in Texas excludes claims/suits arising from an automobile accident. However, there is a coverage that can be added by endorsement, called “Hired/Non-Owned” auto, which extends your General Liability to employees driving their own vehicle commercially. In the absence of this endorsement, you are relying on your employees personal auto policy, which may or may not exist…or might have insufficient limits. 

So who needs this coverage? Any business that has employees that may potentially use their own vehicle for work-related activities. Pay the little bit of premium now to avoid a potentially massive expenditure in the future!

Any questions about this or any other Commercial Insurance topic, please don’t hesitate to give me a call! (512) 280-5123