Hired and non-owned auto

Hired and non-owned auto (HNOA) coverage protects a business when it is sued over an accident in a vehicle it does not own. A hired auto is one you rent, lease, hire or borrow, such as a rental van for a trade show. A non-owned auto is a vehicle owned by someone else, typically an employee's own car, used while doing your work, such as a bank run or a sales call.

In the ISO business auto form (CA 00 01), these are covered auto symbols 8 (hired autos only) and 9 (non-owned autos only). The CGL excludes auto liability, so the exposure has to be picked up here, either on a business auto policy or by endorsement to a business owner's policy or a CGL. It covers your liability only. Damage to the rented or borrowed vehicle itself needs hired auto physical damage coverage.

On the form, coverage for autos you do not own is excess over any other collectible insurance. The employee's personal auto policy therefore pays first, and the business's HNOA responds above it or when the personal policy does not apply. That excess layer is the reason to buy it: a plaintiff injured by an employee on an errand will sue the employer. Insurers often decline HNOA for businesses where driving is the job, such as delivery services. The guide on Hired and non-owned auto (HNOA) coverage: what it covers and who needs it covers the details, and employees driving their own cars for work: who is liable? covers the risk side.