Hired Auto Coverage Insurance and its Benefits
Hired Auto Coverage Insurance, also known as Non-Owned Auto Coverage. It is a type of insurance policy which provides insurance to an individual or a business organization. Targeting any vehicles which are hired or rented for your business operations. This policy can be incorporated as an endorsement in General Liability Insurance. It is not necessary for you or your business to specifically own the vehicle to get benefits from this policy.
The Added Advantage
A rental company, from which you have hired your vehicles, can also accommodate you for liability coverage. But the liability coverage is considerably more headache inducing, as well as considerably more expensive. You can avoid getting into this conundrum if you have the foresight to get a hired auto insurance policy. That way no rental company will pressure you into buying the liability coverage. Even temporarily in lieu of safeguarding their automobiles.
If you are unfortunate enough to get in an accident in your rental automobile. Hired Auto Insurance will provide coverage for;
- Bodily Injury suffered from a collision by you or your employees.
- Property Damage caused in a collision by you or your employees.
Importance in the Law
It is required for an employer or a business owner to provide access of Hired Auto Insurance to their employees and themselves by law. The law varies state by state. In state of Texas for instance, it is required to have 30,000$ coverage for injuries per person and 25,000$ coverage for property damage.
A Point of Note
Commercial Hired Auto Coverage does not pay for the damage caused by the collision specifically to your automobile. The person behind the wheel, whether it is you or your employee. Can still get sued for the collision by the victim.
Difference from Personal Policies
Personal Policies usually do not consider inclusion of Personal Auto Liability, therefore;
- Hired Auto Coverage can help fill the gap in your personal auto liability insurance for work related driving. It can even go as far as to include the designation of the liability coverage. That you may need for a rental or a hired car. It is important to know that Hired Auto coverage can address your company’s liability. But it does not offer liability protection for the person driving the car. As stated above, whoever was behind the wheel may be held personally liable for third-party injuries.
- Non-Owned Auto Coverage can help pay for the coverage of legal expenses if your business is sued over a car accident. Your employees caused while driving a non-personal vehicle for business errands. Just like Hired Auto, it only provides the coverage for company’s liability. Essentially speaking, its role is to fill the gap in personal auto liability coverage, which doesn’t cover business driving. You must keep in mind that whoever was driving can still be charged for personal liability for any damage. They might have inadvertently caused.
A few Examples
Following are a few scenarios in which it could be essential for your business to acquire a Hired Auto Insurance.
- You might need to send an errand boy to pick up office supplies for the office, deliveries from a cargo shipment company or simply a lunch from your favorite joint.
- Need to rent a car while you are on a business trip in a foreign city, state or even a country.
- You might feel the need to impress a visiting client to your personal locale by sending a limo to have him or her picked up. It is a simple business strategy to impress clients.
- You might also need coverage in case there is a simple auto accident and you are sued by those who were harmed by the collision.
An astute capitalist would keep it in mind that potentially a situation may arise where this policy is needed. The kind of business does not matter in the least. A rental situation for an automobile or just the need of one to run errands usually always comes up.
SG Financial Inc. is a such an insurance provider which covers those who deem it prudent to avail a Hired Auto Insurance Coverage. Our operations are based from Dallas, Texas. Therefore, if you live in or near that area, it would be wise to contact us and get the coverage. We believe in straight forward business. There are no hidden clauses or hidden charges which may cause unintentional harm to our clients. Moreover, our services also follow the letter of the law. We fulfill all the state and federal requirements for our clients. Our services are also cheap, so it will be easier for the new business startups to avail such services without making too much dent into their coffers.