Hired & Non-Owned Auto Insurance in Mankato, Minnesota

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance (HNOA) fills a critical gap in your business coverage when employees drive vehicles your company doesn't own. Our insurance agents help Mankato businesses understand how this coverage works and why it matters.

This policy covers liability claims when an employee uses their personal vehicle for business errands or when your team rents a car for a work trip. If an at-fault accident happens during business use, HNOA steps in to cover bodily injury and property damage claims against your company.

Think of it as secondary coverage. The employee's personal auto policy or the rental company's insurance pays first. Your HNOA coverage kicks in when those limits are exhausted or if the primary coverage denies the claim because the vehicle was used for business purposes.

Many business owners assume their commercial auto policy covers all vehicle-related risks. That's not true if you don't own the vehicles being driven for work. Without HNOA coverage, your business is exposed to potentially devastating lawsuits from accidents involving employee-owned or rented vehicles used for business purposes.

This coverage is especially important in Minnesota, where winter driving conditions increase accident risks. When your employee hits an icy patch while delivering documents to a client, you want protection in place.

What Does Hired & Non-Owned Auto Insurance Cover?

HNOA insurance provides liability coverage for specific situations involving vehicles your business doesn't own. Understanding what's covered helps you make informed decisions about protecting your company.

Non-Owned Auto Coverage includes:

• Employee personal vehicles: When your staff uses their own car to run business errands, pick up supplies, or visit clients
• Bodily injury liability: Medical expenses, lost wages, and legal costs when someone is injured in an accident
• Property damage liability: Repairs or replacement costs when other vehicles or property are damaged
• Legal defense costs: Attorney fees and court costs if your business faces a lawsuit from an accident
• Settlement payments: Covered claims up to your policy limits

Hired Auto Coverage includes:

• Rental vehicles: Cars, vans, or trucks your employees rent for business trips or temporary use
• Short-term leases: Vehicles leased for less than six months
• Borrowed vehicles: Cars borrowed from clients, vendors, or partners for business purposes
• Same liability protections: Bodily injury and property damage coverage similar to non-owned coverage

What HNOA typically doesn't cover includes physical damage to the hired or non-owned vehicle itself, injuries to your employee who was driving, intentional acts, or vehicles used for personal purposes unrelated to work.

The coverage applies only when the vehicle is used for business activities. Your employee's commute to and from work generally isn't covered, but a trip from the office to a client meeting would be.

How Much Does Hired & Non-Owned Auto Insurance Cost?

The cost of HNOA coverage varies based on several factors specific to your business operations. Unlike owned vehicle insurance, HNOA premiums are typically more affordable because the policy provides secondary coverage.

Insurance carriers evaluate these key factors when determining your premium:

The number of employees who regularly drive for business purposes significantly impacts cost. A company with 50 employees who occasionally use personal vehicles pays more than a business with five employees doing the same.

How frequently your team drives for work matters too. Businesses with daily client visits or regular delivery runs face higher premiums than companies where employees rarely leave the office. The more time on the road, the greater the exposure to potential accidents.

Your coverage limits affect pricing directly. Higher liability limits provide better protection but increase your premium. Most businesses choose limits between $500,000 and $1 million, but your specific needs depend on your risk exposure and industry requirements.

The types of vehicles your employees drive also play a role. Standard passenger cars typically cost less to cover than larger vehicles like pickup trucks or cargo vans.

Your industry and business type influence rates as well. Real estate agents who drive frequently to show properties may pay more than accountants who occasionally visit client offices.

Your claims history matters to insurers. A clean record with no previous HNOA claims often results in lower premiums. Bundling HNOA coverage with your other commercial policies can lead to multi-policy discounts from many carriers.

The good news? HNOA is often one of the more affordable commercial coverages because it's secondary to other insurance. Many Mankato businesses add this protection for just a few hundred dollars annually. Getting quotes from multiple carriers helps you find competitive rates while maintaining the coverage you need.

Do I Need Hired & Non-Owned Auto Insurance?

If employees ever drive for your business in vehicles you don't own, you likely need this coverage. Many business owners overlook this exposure until it's too late.

You should strongly consider HNOA coverage if any of these situations apply to your business:

Your team regularly uses personal vehicles for work-related tasks. This includes sales representatives visiting clients, employees picking up office supplies, or staff running business errands during work hours. Even occasional business driving creates liability exposure.

Your employees travel for work and rent cars. Whether it's attending conferences, meeting with out-of-town clients, or visiting job sites, rental vehicles used for business purposes need coverage beyond what the rental company provides.

You have mobile employees who work from home or remote locations. If your team doesn't report to a central office but drives to client sites, you face significant exposure from non-owned vehicle use.

Your commercial general liability policy requires it. Many GL policies exclude auto liability, creating a coverage gap that HNOA fills. Some clients or contracts may require proof of this coverage before working with you.

You're a small business without company vehicles. Many startups and small businesses rely on employees using personal cars rather than maintaining a company fleet. This approach saves money but creates liability risks that HNOA addresses.

Your industry involves frequent client interactions or site visits. Real estate agents, consultants, home healthcare providers, contractors, and service businesses often need this protection because of how much their teams drive for work.

Even businesses with company vehicles may need HNOA coverage. If employees sometimes use personal vehicles when company cars are unavailable, you have a coverage gap. The relatively low cost of HNOA makes it worthwhile protection against potentially expensive lawsuits.

How to Get Hired & Non-Owned Auto Insurance in Mankato

Getting the right HNOA coverage for your Minnesota business starts with understanding your specific risks and coverage needs. Working with a local independent agent makes the process straightforward.

Start by evaluating how your business uses vehicles. Document which employees drive for work, how often they drive, and whether they use personal vehicles or rentals. This information helps determine your coverage needs and provides accurate details to insurers.

Consider Minnesota-specific factors that affect your coverage. Our harsh winters mean higher accident risks, especially when employees drive for business during snow and ice season. Your coverage should account for these regional challenges.

Review your existing insurance policies carefully. Check whether your commercial auto policy, if you have one, includes hired and non-owned coverage. Many commercial auto policies include this as an extension, but standalone policies might not. Verify that your general liability policy doesn't exclude auto-related claims.

Determine appropriate coverage limits based on your business size, industry, and risk exposure. Consider what you could afford to pay out of pocket if an employee causes a serious accident while driving for your business. Most businesses choose limits of at least $1 million to adequately protect their assets.

Working with an independent insurance agency gives you access to multiple carriers and coverage options. Unlike captive agents who represent one company, independent agents compare policies from numerous insurers to find the best combination of coverage and price for your situation.

Gather necessary information before requesting quotes. Carriers typically ask about your number of employees, business type, estimated miles driven for business annually, and any previous auto liability claims. Having this ready speeds up the quoting process.

Many insurers offer HNOA as an endorsement to existing commercial policies, which often provides savings compared to standalone coverage. Ask about bundling options and available discounts when comparing quotes.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Don't leave your Mankato business exposed to liability from employee vehicle use. One accident involving a personal or rental car driven for business purposes can result in costly lawsuits that threaten everything you've built.

Rehm Insurance & Financial Services makes protecting your business simple. As an independent agency, we compare coverage options from multiple top-rated carriers to find the right protection at competitive rates. We'll explain your options in clear terms and answer all your questions about how HNOA coverage works with your existing policies.

Our team understands the unique challenges Minnesota businesses face, from winter driving hazards to industry-specific requirements. We'll help you determine the appropriate coverage limits and identify any gaps in your current insurance program.

Ready to protect your business? Contact our team today for a free, no-obligation quote. We'll review your specific situation and provide personalized recommendations that give you confidence knowing your business is properly protected when employees hit the road.