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Risky Business

Hired and Non Owned Coverage

By Shelly Benisch, CIC with Commercial Insurance Solutions (CIS)
Posted May 9th 2013 4:45AM

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Hi Everyone,

I thought I'd talk about confusing Insurance Terms for the next couple of blogs.  Today, let's focus on that all encompassing "Hired and Non-Owned" lingo you hear tossed around from time to time.

I'd like to address "Non-Owned" first, because it's the most likely this is the coverage that you can obtain if you want it on a Trucking for Hire policy.

"Non-Owned" is very specific in simply protecting your business when employees drive their own cars for a business purpose.

No, this does not insure the Owner Operator, who is a Sub-Contractor.

It is designed for the secretary who runs to the corner to pick up the deli for the office. 

"Hired" is very specific in nature as well.  It provides Liability Protection when YOU are driving a vehicle that you do not own.  This is designed for the rental car situation. 

When the Rental Car agency asks you if you want their insurance?  If you have Comp and Collision on your scheduled vehicle, then that coverage will extend through Hired Auto to that rental car.

No, this does not insure the Owner Operator, who is a Sub-Contractor.

Next time I'll clarify other confusing insurance terms.

Shelly

Shelly@myCISagent.com    www.MyCISagent.com





 

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