Hired and non-owned auto liability insurance is an important coverage that can be confusing, but is worth understanding. All breweries likely have an auto liability exposure whether they own vehicles or not. In this post we will go over the basics of hired and non-owned auto liability and why it's needed.
Hired and Non Owned Auto Liability Coverage relates to commercial auto liability for your business. Even in the event that your brewery doesn't have any vehicles titled in its name, you should still carry coverage for Hired and Non-owned Auto Liability Insurance. This coverage can be endorsed onto your Package or General Liability Insurance policy. It can be written as stand alone coverage which is sometimes necessary for businesses with greater exposure (pizza delivery for example). Non owned auto liability insurance coverage becomes vital in the event that an employee or agent of the company is involved in an accident in their personal vehicle on company business. In that case the company and the individual can both be at significant risk.
Non Owned Auto Liability protects your company if it is brought into a lawsuit resulting from an auto accident involving a vehicle owned by you personally, or owned by one of your employees (not owned by the company) if they were using it for company business. Examples we often use are sending staff to the bank for you or going to pick up food for an office meeting.
Hired Auto Liability protects your company interests in the event that it is sued resulting from an auto accident due to the use of a hired or rented vehicle by one of your employees while on company business. This can be important if you have sales people that rent vehicles on travel regularly.
If you do own vehicles in the company name, you will need a commercial auto insurance policy. Hired and Non Owned Auto Liability are also available on these policies and highly recommended. This coverage is optional, but we almost always recommend it since it typically carries a low premium (average of $90-$300 per year depending on your business and number of employees). If you would like a review of your insurance, please contact Brew Insure. You may also request a quote for your commercial auto insurance needs here.