By Liberty Union Insurance Group, Inc. · Published · Updated
Match coverage to who owns the vehicle
Commercial auto is the broader coverage conversation for a business’s vehicle exposures. Hired auto liability generally addresses eligible rented or borrowed vehicles; non-owned auto liability generally addresses vehicles such as employees’ personal cars used in the business. Exact definitions, insureds and covered-auto designations control.
Liberty Union Insurance Group, Inc. asks about both your fleet and the trips that happen outside it. A company with no owned vehicles can still have an auto liability exposure when an employee makes a bank deposit or visits a customer.
Liability is different from damage to the car
Hired and non-owned liability should not be assumed to pay for damage to a rented car or an employee’s car. Hired auto physical damage, rental contract obligations and each driver’s own protection need separate review. Do not assume the employee personally has every protection provided to the business.
For a contractor with five trucks, adding a sixth vehicle to a schedule does not answer the separate question of employees using their own cars. Tell the agency about both situations.
Does a personal auto policy cover business driving?
Sometimes, depending on the policy and the activity. Business-use exclusions and exceptions vary. Describe the actual work to the personal insurer and ask how it is covered; do not assume either universal coverage or a universal exclusion. TDI’s guidance on temporary vehicles illustrates how policy wording and business use can change the answer.
Questions business owners ask
Do I need non-owned auto coverage if employees only run occasional errands?
Occasional trips can still create business liability. Discuss those trips, the employees involved and their personal insurance with Liberty Union.
Does hired auto liability cover every rental charge after a crash?
No. Liability and physical damage are different. Review rental damage, loss-of-use charges and other contract obligations separately.
Sources and further reading
Educational information. Policy terms and applicable law control; this is not an individual coverage determination or legal opinion.