Hired & Non-Owned Auto Insurance in Connecticut

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance fills a critical gap in your business coverage. It protects your company when employees use vehicles for business purposes that aren't owned by your company. United Insurance Group's insurance agents help you find the right coverage for your business operations.

This coverage applies in two main scenarios. Non-owned auto insurance covers liability when your employees use their personal vehicles for work tasks like running errands, visiting clients, or making deliveries. Hired auto insurance kicks in when your employees drive rental cars, borrowed vehicles, or other short-term vehicle arrangements for business purposes.

Your commercial auto policy only covers vehicles your business owns or leases. If an employee causes an accident while driving their own car to a client meeting, their personal auto policy responds first. But personal policies may not provide adequate limits for business-related accidents, and they might deny the claim entirely if they determine the trip was work-related. That's where hired and non-owned auto insurance becomes essential.

This coverage is typically added as an endorsement to your general liability policy or offered as a standalone policy. It provides excess liability coverage above the employee's personal auto insurance, protecting your business from potentially devastating lawsuits.

What Does Hired & Non-Owned Auto Insurance Cover?

Hired and non-owned auto coverage protects your business from liability claims when employees drive vehicles you don't own. Here's what this insurance covers:

• Bodily Injury Liability: Medical expenses, lost wages, and legal costs if an employee injures someone while driving a personal or rental vehicle for work
• Property Damage Liability: Repair or replacement costs if an employee damages another person's property with a non-owned or hired vehicle
• Legal Defense Costs: Attorney fees, court costs, and settlement expenses if your business faces a lawsuit from an accident
• Rental Vehicle Accidents: Coverage when employees rent cars for business trips, client visits, or company events
• Employee Personal Vehicle Use: Protection when staff members use their own cars for errands, deliveries, or client meetings

The coverage works as excess insurance over the driver's personal auto policy. If an employee causes a $500,000 accident while driving to meet a client, their personal policy might cover the first $100,000. Your hired and non-owned policy would then cover the remaining $400,000, protecting your business assets from the claim.

This insurance also covers situations where an employee's personal policy denies coverage because the vehicle was being used for business purposes. Without hired and non-owned coverage, your business would be responsible for the entire claim.

Important exclusions apply. This policy doesn't cover damage to the hired or non-owned vehicle itself—only liability to others. It also won't cover vehicles you own, lease, or regularly use for business. Those need coverage under a standard commercial auto policy. The coverage doesn't extend to employees using vehicles for personal reasons unrelated to work.

How Much Does Hired & Non-Owned Auto Insurance Cost?

The cost of hired and non-owned auto insurance varies based on several business factors. Understanding what influences your premium helps you budget appropriately and identify potential savings.

The number of employees who drive for business purposes significantly affects your rate. A company with five employees occasionally visiting clients pays less than an organization where fifty staff members regularly use personal vehicles for work. Insurance carriers assess your exposure based on how many people might be driving at any given time.

The frequency and nature of business driving matters considerably. If your employees only drive to the occasional client meeting, you'll pay less than a business where staff members are constantly on the road making deliveries or sales calls. The more time employees spend driving, the higher the likelihood of an accident.

Your coverage limits directly impact cost. Higher liability limits provide better protection but come with higher premiums. Many businesses choose limits of $1 million or more to adequately protect their assets. Your specific needs depend on your business size, industry risks, and potential exposure.

Your business location influences rates as well. Areas with heavy traffic, higher accident rates, or expensive medical costs typically see higher premiums. Urban businesses often pay more than rural companies due to increased driving risks.

Your claims history plays a role too. A clean track record with no prior accidents involving employee vehicles helps keep costs down. Previous claims can indicate higher risk and lead to increased premiums.

Working with an independent agent gives you access to multiple carriers and competitive rates. We compare quotes from different insurers to find you the best value for your specific situation.

Do I Need Hired & Non-Owned Auto Insurance?

If your employees ever drive for work purposes in vehicles you don't own, you need this coverage. Many business owners assume their commercial auto policy or employees' personal insurance provides adequate protection—but that's rarely the case.

You definitely need hired and non-owned auto insurance if your employees regularly use personal vehicles for business tasks. This includes driving to client meetings, running business errands, picking up supplies, making deliveries, or traveling to job sites. Even occasional business use creates liability exposure for your company.

Businesses that frequently rent vehicles for employee use should carry this coverage. If your staff travels for conferences, sales calls, or project work and rents cars, you're exposed to liability risks. The rental company's insurance has significant limitations and won't protect your business assets.

Companies without any company-owned vehicles often need this insurance the most. If you reimburse employees for mileage or expect them to use their own cars for work, you're creating a liability exposure that personal auto policies won't fully cover.

Professional services firms, consulting companies, real estate agencies, and sales organizations commonly need this protection. If your business model involves employees traveling to client locations or job sites, this coverage is essential.

Consider your contractual obligations too. Many clients and general contractors require proof of hired and non-owned auto insurance before awarding contracts. Without it, you might lose business opportunities.

Even businesses with commercial auto policies should consider this coverage. Your commercial policy covers owned vehicles, but it doesn't extend to employee personal vehicles or short-term rentals. The gap in coverage could leave you vulnerable to substantial claims.

How to Get Hired & Non-Owned Auto Insurance in Connecticut

Getting hired and non-owned auto coverage starts with understanding your Connecticut business requirements and exposure. Connecticut businesses face specific liability risks when employees drive for work, making proper coverage essential for protecting your company.

Begin by documenting which employees drive for business purposes and how often. Create a list of typical business driving activities—client visits, supply runs, job site travel, or conference attendance. This information helps determine appropriate coverage limits for your Connecticut business.

Contact an independent insurance agent who can quote multiple carriers. We work with several insurance companies, allowing us to compare coverage options and find competitive rates. Some carriers specialize in certain industries or business sizes, so having access to multiple options ensures you get the best fit.

Be prepared to provide details about your business operations, number of employees, annual mileage estimates for business driving, and your current insurance coverage. Carriers need this information to accurately quote your policy.

Review your current general liability and commercial auto policies. Hired and non-owned auto coverage often attaches to your general liability policy as an endorsement. If you already have commercial insurance, adding this coverage might be simpler and more cost-effective than purchasing a standalone policy.

Consider your coverage limits carefully. While lower limits reduce premiums, they might not adequately protect your business assets. Discuss appropriate limits with your agent based on your specific risk exposure and industry standards.

Connecticut law doesn't specifically require hired and non-owned auto insurance, but it's essential protection for most businesses. The state does require minimum auto liability coverage, and if an employee's personal policy doesn't meet those minimums or denies a claim, your business could face serious financial consequences.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your Connecticut business from employee driving risks doesn't have to be complicated. United Insurance Group has served Connecticut businesses since 1973, helping companies like yours find the right coverage at competitive rates.

We shop multiple top-rated carriers to find hired and non-owned auto insurance that fits your specific needs and budget. Our independent agency status means we work for you, not the insurance companies. We compare coverage options, explain your choices clearly, and handle all the paperwork.

Getting a quote is straightforward. We'll ask about your business operations, employee driving activities, and current coverage. Then we'll provide customized quotes from multiple carriers, making it easy to compare options and choose the best protection.

Ready to get started? Contact our team for a free quote today. We'll answer your questions, explain your coverage options, and help you make an informed decision about protecting your business. Call us or request a quote online—we're here to help.