If you own or operate trucks, you may find yourself with the number of insurance options available to the industry. One of the options you’re likely to come across is Hired and Non-Owned Auto Liability Insurance. Although the Federal Motor Carrier Safety Administration does not require this insurance policy, you may find it beneficial to your operations. This article contains a brief breakdown of Hired and Non-Owned Auto Liability Insurance and its benefits.
Defining Hired And Non-Owned Auto Liability Insurance
According to Insureon, Hired and Non-Owned Auto Liability Insurance is “a type of auto coverage that helps pay for commercial liability expenses arising from accidents in rental cars and employee vehicles.” They continue to say that the insurance policy could be beneficial if you or your employees use cars that the business does not own, such as:
•Trucks Borrowed from Another Operator
It’s worth noting that many trucking owners assume that they already have this policy included with their standard auto insurance. Unfortunately, this is often not the case. Trucking owner and operators should pay careful attention to whether Hired and Non-Owned Auto Liability insurance is included in their initial policy or if they must purchase this policy as an add-on.
What Do The Policies Cover?
When evaluating what Hired and Non-Owned Auto Liability Insurance covers, it’s likely beneficial to break down the various components. The “Hired” portion of the policy covers different things than the “Non-Owned” portion of the policy.
Hired Auto Liability coverage refers to a vehicle that is owned by someone else and that you use, either as a hire or rental, on a short-term basis. For instance, imagine one of your rigs breaks down halfway toward its destination. Your trucker needs to stay with the company rig, so a trucker for-hire uses their vehicle to haul your load to its destination. Your Hired Auto Liability policy would protect the for-hire trucker.
Non-Owned Auto Liability coverage refers to when you do not own a vehicle but still use it for business purposes. For instance, imagine you are hauling a wide-load and need to rent a car to indicate as such. Since you’ll be using the rental for business operations, it is a “non-owned” automobile.
What Are The Policy Limits?
Although your insurance provider will work with you to determine coverage limits for your policy, a general rule of thumb is that Hired and Non-Owned Auto Liability Insurance will match the limits set forth by your Auto Liability policy. Many insurance carriers allow those in the trucking industry to add Hired, and Non-Owned Auto Liability Insurance onto any other plan at any time.
Although specifics may vary from carrier to carrier, Hired, and Non-Owned Auto Insurance will cover settlements, judgments, attorney fees, and any other court costs that may arise were your business to be sued as the result of an accident.
However, you should know that the policy will not cover any repair expenses to the vehicle, any accidents that occur in a car or truck while coming to or from work, and any accident that happens while an employee is running personal errands during business hours.