Hired Auto & Non-Owned Auto
Hired Auto & Non-Owned Auto coverage is typically added as an endorsement on a General Liability policy. When there are no vehicles titled in the company name this coverage will meet the contract requirement for Commercial Auto coverage.
Hired Auto coverage replaces or augments the liability coverage offered by auto rental agencies. However, the vehicle must be rented in your company's name and this does not replace the physical damage coverage that applies to any damage you cause to the vehicle you are renting. You should still obtain physical damage coverage from the rental agency.
Non-Owned Auto coverage protects your company in the event that your company is sued as a result of an auto accident that you or one of your employees has in a personal vehicle while on company business. This coverage will not protect you or your employee personally, only your personal auto policy will do that.
Legal Defense Costs
Even if your company is not legally responsible for some claim someone makes against you, it can be quite expensive to defend yourself against such claims. Fortunately, your liability policy will typically pay for:
- Any defense costs incurred directly by the insurance company, including attorney's fees, witness fees, and police reports;
- Any court costs or related costs you're charged in connection with a legal suit;
- Reasonable expenses you incur at the insurance company's request to assist in your defense (such as loss of earnings if you have to testify in court). Your liability policy will also pay the premium for any bond the court requires, making sure judgment will be paid if you are found legally liable for some injury or damage.