Hired and Non-Owned Auto – (HNOA) insurance protects a business from liability claims when employees or the business uses vehicles it doesn’t own (not titled in the business name):
- Hired vehicles covers vehicles that the business rents, leases, or borrows for work
- Non-owned vehicles covers employees’ personal vehicles that are used for business purposes
HNOA insurance can cover commercial auto liability damages, Settlements, Judgments, Attorney fees, and Other court costs.
HNOA insurance is important because commercial auto policies don’t automatically cover liability exposure from vehicles that aren’t owned by the business. It can be purchased as a standalone policy or added to a general liability insurance policy.
HNOA insurance doesn’t cover accidents that happen during personal errands or commutes during business hours. It also can’t pay for physical damages to the non-owned vehicle.
When do I need this? If you or any employee will ever drive a vehicle that is not owned by your company for company business, you should have this endorsement on your policy.
Hired Auto Physical Damage – covers damage done to the vehicle itself while you rent it. Sometimes the company renting the vehicle to you will give you the option to go under their insurance for this type of coverage. Some General Liability policies will have an endorsement option to add this to HNOA coverage.
When do I need this? If you own a company that contemplates renting a vehicle for company business on a regular basis you should consider this endorsement.
Drive Other Car – (DOC) insurance is a commercial auto endorsement designed to provide non-owned auto coverage under a commercial auto policy similar to that which would be provided under a personal auto policy (PAP).
When do I need this? If a business owner or LLC member does not have a personal auto policy that will extend liability coverage to a borrowed vehicle, this endorsement can fill the gap to provide this coverage as an extension from the Commercial Auto policy.
General Liability – General liability insurance, also known as business liability insurance or commercial general liability (CGL) insurance, protects businesses from financial losses due to property damage, bodily injury, and other claims.
When do I need this? Every business needs General Liability insurance to protect them from lawsuits and to make a potential injured party whole.
Professional Liability Insurance – Professional liability insurance (PLI) is a type of insurance that protects businesses and professionals from claims that they made a mistake while providing a service. It’s also known as errors and omissions (E&O) insurance and sometimes called Malpractice insurance.
When do I need this? When your business provides a professional service or advice. Incorrect advice or an error can result in financial harm to another party.
Data Breach – Data breach insurance is a type of cybersecurity insurance that covers the costs associated with a data security breach, such as when a company accidentally or through a cyber attack exposes sensitive customer information like personal details or financial data, potentially leading to legal fees, credit monitoring costs, and public relations expenses related to the breach.
When do I need this? If your business handles Personally Identifiable Information (PII) then there is a risk that this data may be compromised and your business will be liable for damages as well as future monitoring costs to affected customers.
Employment Practices Liability Insurance (EPLI) – This covers lawsuits for wrongful termination or failure to hire can be lodged whether a business is guilty of bad practices or not. This insurance covers a business that is accused and will defend or pay damages.
When do I need this? Businesses with employees should have this coverage. The higher the rate of employee turnover the more critical this coverage becomes.
Worker’s Compensation – Protection for workplace injuries for employees. Business owners with at least 10% stake in the company may opt out of this coverage but often it is valuable to maintain it.
When do I need this? Any business with an employee is required to have this coverage.
Commercial Umbrella Insurance – With all these other policies underneath it, a commercial umbrella is an inexpensive and efficient way to increase the overall limit of insurance when required or desired.
When do I need this? Businesses that are growing larger so that $1 Million in coverage is not enough, or when a business enters into a contract that requires more liability.
Commercial Auto Insurance – Protects businesses from incidents that may occur when vehicles owned by the business are being used in the business. Employees may be listed on the policy to ensure that coverage is not questioned.
When do I need this? If a vehicle is titled in the name of the business you will be required to purchase a commercial vehicle policy. If employees need access to vehicles, a commercial policy is appropriate. Some vehicles will require a commercial platform due to their size.