Hired and Non-Owned Auto (HNOA)
What Is Hired and Non-Owned Auto (HNOA) Insurance?
Hired and Non-Owned Auto (HNOA) is insurance coverage that protects a business from liability claims arising from vehicles that are not owned by the company, like employees driving their personal vehicles for business purposes.
HNOA can also provide liability coverage for autos being rented by or loaned to the business.
What Does Hired and Non-Owned Auto Cover?
Hired and Non-Owned Auto applies when you or an employee uses a rented, leased, or borrowed vehicle, or when an employee uses their own car for business errands like deliveries, bank runs, or site visits.
HNOA insurance typically covers:
- Third-party bodily injury and property damage liability (aka harm or damage done to others)
- Legal defense costs, settlements, and judgments, even if a lawsuit is groundless, up to the policy’s limits
- Vicarious liability for your business (aka an employee causes a crash while driving for work)
If you don’t own company cars but people drive for work, HNOA is a smart, affordable way to plug a gap in your small business coverage.
What Does Hired and Non-Owned Auto Not Cover?
Hired and Non-Owned Auto Insurance typically does not cover:
- Damage to the vehicle being driven, whether it’s a rental or personal (you’d need a rental car damage waiver/endorsement for that)
- Vehicles your business owns (that’s covered by Commercial Auto)
- Injuries to the employee driving (usually covered under Workers Comp or health insurance)
- Business cargo or tools inside the vehicle that are not permanently installed as part of the vehicle (gear and equipment / inland marine covers these items)
- Personal use or commuting, intentional or illegal acts, racing, or other specifically excluded activities
Hired and Non-Owned Auto vs Commercial Auto: What’s the Difference?
Hired and Non-Owned Auto Insurance is for small business owners who do not own business vehicles, but do sometimes rent or borrow cars for business purposes.
Commercial Auto Insurance is for small businesses that own company vehicles.
No company cars = HNOA.
Company cars = Commercial Auto.
Note: Leased vehicles may fall under commercial auto or hired/non-owned auto coverage depending on your policy language
| Hired & Non-Owned Auto (HNOA) | Commercial Auto | |
|---|---|---|
|
Who it’s for |
Businesses that don’t own vehicles, but employees or business owners drive or rent vehicles for work purposes |
Businesses that own, register, or regularly use company vehicles |
|
Vehicles covered |
Rented/leased/borrowed vehicles and employees’ personal cars used for businessContent |
Company-owned cars, vans, trucks (and any specifically named hired or non-owned vehicles, if endorsed) |
|
Main purpose |
Liability if your business is sued after an accident in a non-owned or hired auto |
Liability for owned vehicles; can add physical damage (aka comprehensive and collision coverage) for your vehicles |
|
Damage to the vehicle you’re driving |
Not covered without an additional endorsement |
Covered if comprehensive and collision coverage are added to the policy |
|
Driver injuries |
Not covered |
Not covered under auto liability |
|
Business cargo/tools in a vehicle |
Not covered |
Typically not covered under auto liability |
|
Typical use cases |
Bank runs, supply pickups, deliveries in personal cars, short-term rentals for events |
Daily routes, service calls, deliveries in company vans or trucks (excluding semi-trucks) |
|
When it’s needed |
You don’t own vehicles, but people drive for work (even occasionally), or it’s required by a client, partner, or rental company |
You own vehicles used for business |
Who it’s for
Hired & Non-Owned Auto (HNOA): Businesses that don’t own vehicles, but employees or business owners drive or rent vehicles for work purposes
Commercial Auto: Businesses that own, register, or regularly use company vehicles
Vehicles covered
Hired & Non-Owned Auto (HNOA): Rented/leased/borrowed vehicles and employees’ personal cars used for business
Commercial Auto: Company-owned cars, vans, trucks (and any specifically named hired or non-owned vehicles, if endorsed)
Main purpose
Hired & Non-Owned Auto (HNOA): Liability if your business is sued after an accident in a non-owned or hired auto
Commercial Auto: Liability for owned vehicles; can add physical damage (aka comprehensive and collision coverage) for your vehicles
Damage to the vehicle you’re driving
Hired & Non-Owned Auto (HNOA): Not covered without an additional endorsement
Commercial Auto: Covered if comprehensive and collision coverage are added to the policy
Driver injuries
Hired & Non-Owned Auto (HNOA): Not covered
Commercial Auto: Not covered under auto liability
Business cargo/tools in a vehicle
Hired & Non-Owned Auto (HNOA): Not covered
Commercial Auto: Typically not covered under auto liability
Typical use cases
Hired & Non-Owned Auto (HNOA): Bank runs, supply pickups, deliveries in personal cars, short-term rentals for events
Commercial Auto: Daily routes, service calls, deliveries in company vans or trucks (excluding semi-trucks)
When it’s needed
Hired & Non-Owned Auto (HNOA): You don’t own vehicles, but people drive for work (even occasionally), or it’s required by a client, partner, or rental company
Commercial Auto: You own vehicles used for business
Does General Liability Cover Property Damage Claims if an Employee Is Running a Work-Related Errand?
General liability (GL) does not typically cover accidents that happen while someone is driving a vehicle for work. In fact, auto-related claims are often excluded under general liability coverage.
Who Needs Hired and Non-owned Auto Insurance?
You likely need HNOA if you:
- Send staff to the bank, post office, supplier, or on other business errands in a vehicle the business does not own
- Reimburse mileage or ask employees to use their own cars for work
- Rent vans or cars for events, deliveries, or seasonal rushes
- Use gig drivers or temporary rentals for pop-up jobs
- Work under contracts that ask for HNOA on your Certificate of Insurance (COI)
Examples of businesses that commonly need Hired and Non-Owned Auto coverage:
- Contractors and trades for site visits, parts runs, and permit pickups
- Event planners, setup, hosts, and vendors with rental vans for gear and last-minute supply runs
- Retail and e-commerce sellers for things like local drop-offs or returns using personal cars
- Consultants and service professionals for client meetings across town
- Mobile professionals, like beauty, fitness, and pet care professionals who make house-call appointments
Additional Resources
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