As a business owner, you’ve probably heard about commercial auto insurance, but do you know how hired and non-owned auto coverage fits into your policy? For many businesses, especially those that use vehicles they don’t own, this type of coverage can be a lifeline. Whether you run a construction company or a food delivery service, understanding how to properly protect your business from potential liabilities on the road is essential.
This article will break down the basics of these coverages, the types of businesses that need them, and why they’re essential in our local Texas environment.
What Is Hired Auto Coverage?
Hired auto coverage is a type of protection that applies when your business rents or leases vehicles.
Imagine that you run a catering company, and you need to rent vans for a big event. Hired auto coverage will kick in if one of those vehicles is involved in an accident while in use for your business. It protects your business from potential liability, covering damages to the rented vehicle and any injuries or property damage caused by the accident.
Key Features of Hired Auto Coverage:
- Applies to vehicles your business rents or leases.
- Covers damage to the rented vehicle.
- Provides liability protection for accidents involving the hired vehicle.
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Who Needs Hired Auto Coverage?
Businesses that frequently rent or lease vehicles for their operations can significantly benefit from hired auto coverage. Here are a few examples:
- Construction contractors who may rent trucks or vans for specific projects.
- Event planners who need vehicles for transporting goods or staff.
- Landscaping companies that hire trucks seasonally.
- Delivery services that rent vans or trucks during busy times.
In a rapidly growing city like Frisco, where construction and services are booming, the need for flexibility in transportation is vital. This growth leads to more businesses relying on hired vehicles, increasing the importance of hired auto coverage.
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What Is Non-Owned Auto Coverage?
Non-owned auto coverage protects your business when employees use their personal vehicles for work purposes.
For instance, if your sales rep uses their personal car to meet a client or pick up supplies and gets into an accident, your business could be held liable. Non-owned auto coverage will help cover costs associated with that accident, including liability for injuries or damage.
Key Features of Non-Owned Auto Coverage:
- Applies to personal vehicles used for business purposes.
- Covers liability for accidents caused by employees using personal vehicles for work.
- Does not cover physical damage to the employee’s vehicle.
Who Needs Non-Owned Auto Coverage?
Any business that allows employees or contractors to use their personal vehicles for work tasks should consider non-owned auto coverage. This type of coverage is particularly beneficial for:
- Real estate agencies whose agents drive to client meetings.
- Delivery and courier services that rely on contractors using their own cars.
- Consultants and sales teams who regularly travel for work.
With Frisco’s growing population, traffic congestion can increase the likelihood of accidents. This makes non-owned auto coverage even more critical for local businesses, especially those relying on employees who drive their own cars.
ALSO READ: Commercial Auto Insurance 101 for Frisco Residents
Why Hired and Non-Owned Auto Coverage Is Essential in Frisco, TX
Frisco, TX, is a fast-growing city, known for its thriving business environment, new developments, and a rapidly increasing population. With more people on the roads, including both business and personal vehicles, accidents are unfortunately more likely.
Here are a few local factors that make hired and non-owned auto coverage vital for businesses in Frisco:
- Population Growth: Frisco has seen a population boom over the past decade, with more people commuting for work and leisure, leading to increased traffic risks.
- Weather: Like much of Texas, Frisco experiences unpredictable weather, including heavy rains and occasional icy conditions in the winter. This increases the risk of accidents.
- Business Activity: Frisco is home to a variety of industries, from construction to healthcare, many of which rely on hired or non-owned vehicles for day-to-day operations.
These factors, combined with the unique business landscape in Frisco and surrounding areas, underscore the importance of having proper protection for your company’s hired and non-owned vehicles.
Misconceptions About Hired and Non-Owned Auto Coverage
Many business owners believe that their general liability or personal auto insurance will cover every situation on the road, but this is not the case when vehicles are used for business purposes. Here are a few common misconceptions:
- “I don’t rent cars often enough for this to matter.” Even occasional use of hired or non-owned vehicles can expose your business to significant risk.
- “My personal auto insurance will cover me.” Personal policies typically don’t extend coverage to vehicles used for business activities.
- “I don’t own a business vehicle, so I don’t need this coverage.” Even if you don’t own a fleet, if you rent or borrow vehicles, you may still be liable in the event of an accident.
Pricing Differences
The cost of hired and non-owned auto coverage varies depending on the size of your business, the number of employees, and the frequency with which vehicles are rented or used for work. On average, small businesses can expect to pay between $100 and $300 annually for these coverages. However, high-risk industries or businesses with more frequent use of non-owned vehicles may see higher premiums.
ALSO READ: How Much Is Commercial Auto Insurance in Frisco, TX?
The Agent’s Office Expertise and Top-Rated A+ Carriers in Texas
We understand the unique risks faced by business owners in Frisco, TX, and surrounding areas. Our team of dedicated insurance professionals is here to guide you through the complexities of commercial auto insurance, including hired and non-owned auto coverage. With access to top-rated A+ carriers in Texas, we can offer tailored solutions that protect your business without breaking the bank.
Our relationships with trusted providers like Chubb, GEICO and multiple other highly-rated insurance providers ensures that your business has the coverage it needs to operate smoothly, no matter what vehicles you use. Plus, with our Price Optimization process, we run your business details through over 50 carriers to find the best combination of coverage and price.
Protect Your Business with Hired and Non-Owned Auto Coverage
Whether you’re renting vehicles or your employees are using their personal cars for work, hired and non-owned auto coverage is crucial to safeguarding your business from costly liabilities. In Frisco, TX, where traffic and population growth continue to rise, it’s essential to ensure you have the right protection in place.
We’re here to provide expert guidance and access to top-rated A+ carriers so that you can focus on growing your business with peace of mind.
