Settling The Debate: Commercial Auto Insurance Vs. Hired and Non-Owned Auto Insurance

Every day, Americans behave in ways that make them susceptible to risks. Imagine crossing against a red light, unnecessary speeding above the speed limits, or motivating yourself to drive after a tiring day at work. People may not regard these as risky behaviors, but it is to them and other road users. 

While we now have better vehicle technology, safety-conscious road designs, and increased safety advocacies, our roads still witness accident-related deaths and injuries. 

As a business owner, you need to be aware of the litigious nature of the commercial auto insurance environment. Than ever before, your need to prioritize adequate insurance protection. You need to assess your risks and identify the appropriate auto insurance coverage your business needs. 

In this piece, we’ll explore the available auto insurance coverage that can protect your business; 

How Does Commercial Auto Insurance Work?

On the surface, commercial auto insurance covers the costs of accidents involving all vehicles owned and operated for business purposes. It’s a step above your personal auto insurance coverage. 

Commercial Auto Insurance covers vandalism, theft, and all forms of damages to business vehicles. The coverage extends to auto accident liability, medical payments, physical damage and collision, and accidents involving uninsured road users. 

This coverage comes into play when you have to pay for damages in an accident where you are at fault. If your commercial auto insurance includes medical payment, then it covers for medical expenses of you and your passengers, regardless of who caused the accident. 

If you are involved in an accident involving an uninsured motorist, which is a likelihood as every 1 in 8 drivers in the United States are uninsured. When this happens, your business will not be at the receiving end of the medical charges or vehicle repair. 

However, commercial auto insurance does not cover your personal and leased vehicles. 

How Hired and Non-Owned Auto Insurance Operate

As an entrepreneur, your business is still at risk if your employee is involved in an accident in their personal or leased vehicle in the course of business. 

There are always vehicles that your business utilizes but does not own; you still need the proper coverage. This is where hired, and non-owned auto insurance comes into the picture. It’s about protecting your business if your employees rely on their vehicles for work purposes. 

A perfect example would be when an employee crashes their vehicle on their way to a customer’s place; the coverage will cater to any medical expenses, repairs, or litigation. 

Our Verdict

As expert insurance advisors, we recommend to our clients of the need to secure both commercial auto insurance and hired and non-owned auto insurance coverage. This is the only way through which enough coverage for the full scope of your business. 

Still have questions? Contact one of our expert insurance advisors on identifying the appropriate policy coverage for your business.