Hired and Non-Owned Auto Insurance
for Retail Businesses
If your retail business does not have company vehicles, you may at times rely on your employees to drive their personal cars to run business errands. Perhaps your small boutique takes you out of state for a trade show, and you have to rent a car to conduct business. But what if your employee wrecks their car while picking up supplies? What if you collide with another car while on business in a rented vehicle?
For both scenarios, Hired and Non-Owned Auto Insurance is the coverage retail business owners rely on to protect their company on the road. You can add this coverage to your General Liability policy or your Business Owner's Policy to supplement both car rental agencies' liability coverage and your employees' personal auto insurance policies.
Read on to discover how Hired and Non-Owned Auto Insurance protects your retail business, and be sure tocontact our insurance experts if you're wondering if this coverage is appropriate for your business protection plan.
Insurance that Travels
Hired and Non-Owned Auto Coverage for Retailers: Insurance that Travels With You
Retail business owners will find that Hired and Non-Owned Auto Insurance offers necessary risk management protection for employees traveling on behalf of the company in their personal vehicles or rented cars. Hired and Non-Owned Auto Insurance covers the high cost of legal fees, court-ordered settlements, and other expenses if your employee wrecks their own or rented car while carrying out company business and your store is sued as a result of the collision.
Because you never know where your retail business will take you or which last-minute supplies you may need an employee to pick up, this kind of coverage can protect your business from liability in the event of an accident while carrying out business activities. It's important to note that this coverage only steps in to cover your business in the event of a covered claim. You and your employee could still be held personally liable for the injuries or property damage the other driver sustained. Your employee should have their own auto liability coverage to protect them from personal lawsuits. Your Hired and Non-Owned Auto coverage can be used to supplement your employee's policy if it isn't enough to cover a claim.
Our retail-business insurance experts can help you determine whether your company can benefit from this type of coverage.
Key Details About Hired and Non-Owned Auto Coverage for Retail Businesses
Your Hired and Non-Owned Auto coverage not only enhances your business's General Liability policy, but it can also ensure your company meets contract requirements for Commercial Auto coverage if your company doesn't have its own vehicles. Here are a few more important details about this coverage and how it can benefit your retail business.
Hired Auto Coverage
Does your retail business require you or your employees to travel regularly to conduct business or promote your store? If so, you may rely on rented vehicles to carry out your business activities. When your business has Hired Auto coverage, this insurance can either supplement or replace a car rental agency's liability coverage. However, Hired Auto insurance excludes physical damage coverage, which means the rental agency's physical damage insurance is probably a good investment when your business takes you on the road.
Should an accident occur while you or your employees are driving a rented vehicle on behalf of your business, Hired Auto liability coverage protects your company if a third party decides to sue. Though you or your employees could still be held personally liable for damages or injuries as a result of the crash, Hired Auto coverage can only supplement what your Personal Auto Insurance policies do not cover.
Non-Owned Auto Coverage
Just as Hired Auto coverage protects your company in the case of an accident while driving rented vehicles, Non-Owned Auto coverage protects your company if your employees have an accident while carrying out business in their personal vehicles. This coverage protects the company only and supplements the driver's Personal Auto Liability coverage on behalf of your business. Feasibly, the third party involved in the accident could file a personal lawsuit against you or your employee, a liability that a Personal Auto Insurance policy would need to cover.
Legal Defense Costs Coverage
When a lawsuit is filed against your company for an auto accident in an employee's personal vehicle or a rented vehicle, your Hired Auto and Non-Owned Auto coverage will kick in. This type of Auto Liability will cover the legal fees associated with defending your retail business against the claim. A meritless lawsuit brought against your company can still run your business hundreds of thousands of dollars, which is why this kind of protection is so valuable for a small-business owner.
Expenses to defend your company against auto-related claims can add up quickly. Fortunately, your Hired and Non-Owned Auto policy can typically pay for defense costs — including attorney's fees, bond premiums, judgments, or settlement costs — and business interruption expenses, depending on your policy.
Talk to your Insureon agent to find out whether Hired Auto and Non-Owned Auto Insurance is an appropriate risk management measure for your business.
Auto Insurance Policies for Retail Businesses
If you rely on vehicles to keep your company running, our agents at Insureon can help you find the insurance policies that protect your business on the road. Contact one of our insurance agents to determine the coverage that meets the unique needs and risks of your retail business.