Protect Your Business with Hired/Non-Owned Auto Insurance Coverage

For many small businesses, “the office” is wherever the work is. And that, of course, requires travel – often, by car. Whether you and your employees drive your own vehicles, your business has company cars, or you rent a car to get around, knowing what kind of commercial auto insurance you need to protect your business can be tricky.

In addition to individualized car insurance and rental car insurance acquirable from a rental car agency, there are two other types of car insurance you should know about: hired auto and non-owned auto coverages. Both can be added as endorsements on your general liability insurance policy.

Hired Auto Insurance Coverage

When you, the employer, or one of your employees has an happening in a rental car, three different insurance policies can potentially come into play. First, the driver’s own auto liability coverage still applies, just as if he or she were driving her own car. So, if there’s an accident, the employee is personally liable for injuries or property alteration to other parties.

The driver might also have hired car physical alteration coverage as part of his or her own individualized auto insurance policy, which would cover any physical alteration to a rental car. Be careful, though, as some “comprehensive” and most “limited” individualized auto insurance policies don’t include hired car coverage.

Second, there’s the rental car agency’s physical alteration coverage and liability coverage that you are offered at the time of rental.

And third, there’s hired car coverage – an additional coverage that either supplements or replaces a car rental agency’s liability coverage, by protecting your company in the event of a lawsuit resulting from an accident.

Because hired auto insurance only covers liability to your company – not physical alteration – it’s always a good intent to be sure the driver has hired car physical alteration coverage as part of his or her own policy, or to buy the rental agency’s physical alteration coverage whenever you or an employee rents a car.

Non-Owned Auto Insurance Coverage

If you and your employees typically drive for business purposes using individualized vehicles, you’ll want to know about non-owned auto coverage. This type of insurance protects your company against lawsuits that might arise when one of your employees has an auto happening while driving a individualized car on company business.

As with hired auto coverage, the driver’s individualized liability insurance still applies if the driver himself is sued, and the driver’s individualized auto property alteration insurance should cover any physical alteration resulting from an accident. What non-owned auto coverage does is protect your business if the other celebration involved in the happening decides to sue your company.

Do I Need It?

To protect themselves against any liability resulting from an auto happening caused by the or one of your employees while working on a client project, some clients might require your business to carry auto liability coverage. Typically, such coverage is required in contracts with language such as: “Contractor shall carry bodily injury, property damage, and car contractual liability coverage for owned, hired and non-owned autos with a combined single limit of liability for apiece happening of not less than ,000,000.”

But even if your clients don’t require it, hired and non-owned auto coverage might be a smart investment. If an employee of your company has an auto happening in their own car or in a rented car while on company business, and their individualized insurance is not enough to cover the claim, your company can be held responsible for the excess amount. And of course, there’s always the risk that your company itself will be sued.

While the cost of these types of claims can be very high, the cost of protecting your business against them with hired and/or non-owned auto insurance is very low – usually less than 0 per year.

Protect your business with Hired / Non-Owned Auto Insurance Coverage

Q&A: What is a reasonable auto insurance liability amount, i don’t believe the current legal limits are enough?

Scott Asked:
What is a reasonable auto insurance liability amount, i don’t believe the current legal limits are enough?

Florida Say Required Automobile Insurance limits are not almost enough to wear, especially insurance, if you live in a major city in Florida. What is a good adhesion to restrict acceptable wear on my vehicles?

Best answer:

Answer by fighting saints
Great question and analysis. I wish more people would look at the laughable say minimums and recognize that they aren’t enough.

The answer depends on what you have for answers to protect, but I normally recommend a minimum of 100/300/100 for liability limits and 50/100 for uninsured and underinsured coverage.

Add your own answer in the comments!

Which is better full coverage or liability auto insurance?

? I Got Myself a Sponsor ? Asked:
Which is superior full coverage or liability auto insurance?

I live in Wisconsin, where there have not mandatory automobile insurance. I went 26 and since I was 16 without insurance and I’m getting started on a policy as soon as the planning and I have no intent how to get the type of insurance. I drive a 1997 Chevy Lumina with around 222,000 miles on it. If I complete coverage will cover alteration to my automobile and the other people, alteration or liability to do and I have to pay a deductible? I’m about to think to $ 100,000 in coverage.

Best answer:

Answer by lee
I JUST SAVED A LOAD OF MONEY ON MY CAR INSURANCE BY FLEEING THE SCENE OF AN ACCIDENT!

What do you think? Answer below!

General Liability Insurance

It’s pretty much an established fact that we live in an extremely litigious society these days. It’s an absolute necessity that business owners look into General Liability Insurance to help protect themselves from lawsuits. The following is a brief overview of the nature of general liability insurance and its coverage.

Does my Business Need It?

You’d be surprised. Many business owners think that, since they don’t own a restaurant, say, where someone could slip on a floor or break a tooth on an olive, for example, that they don’t need coverage. What they don’t realize is that any company providing a service is at risk for a liability lawsuit. Any business entity dispensing advice, views or solutions could grappling this kind of litigation.

What’s Involved?

General liability insurance covers claims related to negligence like bodily and individualized injury, property damage, and advertising injury (also known as false advertising). It will also cover legal costs incurred during litigation, regardless of the validity of the claim. General liability does not cover incidents in which criminal intent is involved or litigation involving punitive damages.

General liability coverage is often offered to businesses in a package called a Business Owner’s Policy or BOP. Make sure that you look closely into the general liability coverage in these packages, as they are often tailor-made for low-risk businesses. You might want to buy general liability coverage in its own right if you feel your business is at a higher risk of litigation.

Assessing Need

Just as with your auto insurance, your coverage needs will vary from say to state. Look into the average alteration amount awarded in your state- if it’s on the higher end, you will need higher coverage limits. As with other insurance coverage, apiece policy will set limits on the amount owed by either the insurer or the insured in a policy period. Consulting an experienced insurance broker is a good intent to make sure you get adequate coverage for your business.

Protecting your Business

Make sure to stay on top of any incidents that could lead to litigation. Just as with your auto insurance, you should report an happening right away and make sure that you compile accurate documentation on the incident  and submit to your insurer.

Also, make sure to train your employees to prepare against or respond to such incidents. Everything from basic customer service to health and country standards can be involved in a liability claim. Having a well-trained and prepped staff will supplement your insurance coverage and go a long way towards protecting your business and its interests.

General liability insurance

Q&A: How much do you pay for basic liability auto insurance?

csbstrd Asked:
How much do you pay for basic liability auto insurance?

I am only interested in liability insurance. Please enter your say and monthly payment.

Best answer:

Answer by Karle
um the two policies are about $ 1100 each six months i live in SC………but that’s 6 cars insured liability only……and only 2 drivers…….my driving record is horrible and wife has had one happening about 3 years ago and 1 speeding ticket a year b4 that….

Know better? Leave your own answer in the comments!

What is the lowest, best Liability auto Insurance in California ?

April Asked:
What is the lowest, ideal Liability auto Insurance in California ?

I just got a PT Cruiser that dealership when offering 70.00 to the automobile but I sure need insurance know someone who is a good site were I can some citations, rather than one around to compare, or speaking to a pushy insurance agent? I’m not really on looking for a debate just a website thanks!

Best answer:

Answer by Ginger
Wow! If you think comparing rates online and not speaking with a licensed expert is the way to go, more power to you.

There is no such thing as “the lowest, ideal liability auto insurance”. That is different for each individual. It absolutely depends on your credit (and they don’t run that for online quotes), your driver record (also not ran for online quotes), your age, the different coverages you select (which, without the education or license, you have no intent what you’re choosing and how it will affect you when you have a claim).

Many quotes you get online are mostly temporary quote estimates and once the policy is written, then renewed, you’ll see what the real premium will be.

I hope you never have a claim, but if you do, good luck handling it online without one of those “pushy insurance agents”.

What do you think? Answer below!

Auto & Car Insurance: Money-saving Tips

Many people lament the purchase of auto insurance. So we’re here to make it less painful. Check out these six money-saving tips and take the sting out of buying insurance.

Auto Insurance Quote

#1 Raise your deductible. It’s a gamble, sure. You’ll be responsible for a larger amount of the bill should you get into an accident. However, this is a guaranteed way to lower your annual insurance costs.

#2 Shop around. Staying with the same insurance company year after year might not be in your ideal interest. You can cancel or change your policy at any time you don’t need to move for the policy to expire. So shop your insurance apiece six months and compare prices to ensure you are getting the ideal deal.

#3 Remove unneeded extras. Even though knowing you have towing and rental automobile coverage might help you sleep at night, those add-ons are rarely used and not necessarily worth the cost. You pay between and a year over the life of your policy to cover towing. And in the unlikely situation that you need a tow, you’ll pay about 0. Likewise, a small economy automobile costs – a day to rent and automobile rental tacks on another – to your insurance bill apiece year. So you can sleep well knowing that you saved yourself some money.

#4 Protect your credit. More insurers have begun using credit-based insurance scores to determine what you pay for your policy. So paying the water bill on time will actually keep your insurance costs down.

#5 Research discounts. Automobiles with country and anti-theft devices cost less to insure. You can also knock off a few bucks if you insure your automobile and home with the same company. People who desist from alcohol, get good grades in school or take a driver education course are also rewarded with lower premiums.

#6 Get informed. The easiest way to save on any insurance is to research before you buy. And get suggestions from family and friends.

And now for the shameless plug: shope here to find quotes and matched with agents from your area!

Texas Auto Insurance

Auto & Automobile Insurance: Savings Tips

Find More Money Saving Quotes Articles

Q&A: What does personal liability cover for a homeowners insurance policy?

Happy Asked:
What does individualized liability cover for a homeowners insurance policy?

I am independent (nursery) and have 4 employees and I have a lot of customers. I get the homeowner policy, but I wonder if I should get 300K or 500K individualized liability insurance. Is this cover for me when my clients or someone tries to sue me? For example, I heard when my child was in the park, and if something happened, and he injured someone should cover individualized liability, there. So it would be for my business if someone sues me? Someone suggested an umbrella policy, but what is it and what does it cover? How much would it cost? Because I am not much on income from my two mortgage payments and other expenses (including advertising costs). Thanks in advance.

Best answer:

Answer by ernesto_tig
Your HO insurer will cover individualized liability issues and lawsuits resulting from your ownership of a home. Business related activities are specifically excluded (some policies have an endorsement for incidental business use IE a customer drops off a check at your house). Your kid at the park should be covered (varies by say and policy..civil law stuff)

If you have a business with four employees, you should have a business GL(general liability) policy that covers a gardening business. This will defend you if your customers sue you for something you or your employees did related to gardening.

Umbrella policies vary by company; some are extensions of existing underlying coverage, others offer coverage beyond your HO and auto insurance; either way they will not cover your business.

My recommendation: get a business GL policy to cover your business and take the 500K limit on your HO policy. Later when money is not so tight, get a personnal umbrella.

Add your own answer in the comments!

Q&A: I want to create an auto liability insurance agency. What do I need to do for this to be legal?

kurtis.welch Asked:
I want to create an auto liability insurance agency. What do I need to do for this to be legal?

I want to know what kind of steps / paperwork I need to do to make a legal auto insurance agency. Not sure if it matters, but the bureau will be in Texas for Texas drivers.

Best answer:

Answer by Mark P
Well, you could begin by hiring a corporate attorney familiar with Texas insurance law.

Add your own answer in the comments!

Do South Carolina auto insurance laws require me to carry my own liability insurance when driving a rental car?

Augydoggy Asked:
Do South Carolina auto insurance laws require me to carry my own liability insurance when driving a rental car?

I currently own a automobile and so not did not have the need to carry my own liability self-insurance in a while. Is it legal for me a automobile or a automobile from my sister, who do not drive insurance in South Carolina owned? Do I have my own liability insurance buying someone else drive the automobile legally in South Carolina?

Best answer:

Answer by gomanyes
If you borrow someone else’s car, their liability insurance should cover you.

If you rent a car, you will have to buy insurance from the rental company when you pay for the car.

What do you think? Answer below!

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