Restaurant / Bars Blog

What is Hired and Non-Owned Auto Liability Insurance?

Hired and non owned autoHired and Non-Owned Auto Liability insurance covers claims against your company arising from at-fault accidents that involve hired vehicles and/or vehicles not owned by your company that are used in the course of your business (this is excess coverage over and above the primary liability insurance limits of the car involved in the incident). This additional coverage can typically be added to your general liability insurance policy for an additional fee.

 You might think that as a small restaurant or bar that doesn’t own a company car or provide food delivery you don’t need auto coverage. You probably do. Nearly every company uses a personal or hired car for business at some point.  Below, are a couple of examples of Hired and Non-Owned Auto Liability scenarios to consider:  

  •  You ask an employee to drop off a business related item at the post office – the employee is involved in an at-fault accident. Even though the employee was driving a personal vehicle, you may be held liable for the accident because it occurred while the employee was carrying out work duties.
  • You rent a car for business and are involved in an at-fault accident.  The person with whom you had the accident will typically look to your company to pay the damages.

 Remember, Hired and Non-Owned Auto Liability does not cover damage to your car or to your person in the event of an accident.  It provides coverage in excess of the driver’s primary liability insurance limit.

 If you are interested in purchasing Hired and Non-Owned Auto Liability insurance, please contact TMIB at 310-828-9662.