It’s important to have the right Hired and Non-Owned Automobile Liability Insurance for your business if employees will be traveling with or on behalf of clients. That’s because the coverage that applies in an accident will depend on who’s driving and whose vehicle is being used.
Lockton Affinity offers Hired and Non-owned Automobile Liability (HNOA) insurance to help you protect your business in the event of an accident. HNOA coverage can help your business manage the risk posed by coverage limits and gaps of the auto insurance policies carried by your employees and their clients.
What Is Hired and Non-Owned Automobile Liability Insurance?
HNOA insurance consists of two types of coverage:
Hired Automotive Liability:
- Applies to bodily injury or property damage.
- Covers the use of a hired auto.
- Includes coverage for you (the insured or policyholder) or your employees.
- Applies during business use.
This coverage:
- Includes liability coverage for automobiles you or your employees rent for the business.
- Does not include coverage for physical loss to the rented vehicle itself.
Non-owned Automobile Liability:
- Applies to bodily injury or property damage.
- Covers the use of non-owned autos by any person other than you.
- Includes coverage for the vehicles of employees and clients.
- Applies during business use.
This coverage:
- Is intended to protect you and would respond in excess of the employee’s personal auto liability limit.
- Is not intended to protect the employee (who may wish to obtain his or her own auto coverage and liability limits in excess of the state minimum).
Whose Insurance Applies in an Accident?
Below are some examples of how HNOA coverage would most likely apply in what order in an accident.
Driving the Caregiver’s Vehicle
If the caregiver has an at-fault accident while driving the caregiver’s own vehicle and the client is injured:
- The caregiver’s personal insurance responds first and the insured’s HNOA insurance would be in excess.
If the caregiver is injured:
- The insured’s worker’s compensation insurance responds.
If a third party is injured:
- The caregiver’s personal insurance responds first and the insured’s HNOA insurance would be in excess.
If only a vehicle is damaged:
- The caregiver’s personal insurance responds.
Driving the Client’s Vehicle
If the caregiver has an at-fault accident while driving the client’s vehicle and the client is injured:
- The client’s personal insurance responds first, the caregiver’s personal insurance would be in excess and the insured’s HNOA insurance is in excess of that coverage.
If the caregiver is injured:
- The insured’s worker’s compensation insurance responds.
If a third party is injured:
- The client’s personal insurance responds first, the caregiver’s personal insurance would be in excess and the insured’s HNOA insurance is in excess of that coverage.
If only a vehicle is damaged:
- The client’s personal insurance responds.
Protect your Business with Hired and Non-Owned Automobile Liability Insurance
Clients depend on your caregiver employees for all sorts of travel needs, including trips to doctor appointments, the pharmacy, the supermarket, running errands and going on outings. Help protect your business with Hired and Non-owned Automobile Liability coverage.
Call Lockton Affinity at (800) 723-9624 to learn more about HNOA insurance for your business.