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🚗 '''Hired and non-owned auto''' is a classification within [[Definition:Commercial auto insurance | commercial auto insurance]] that refers to vehicles an organization uses but does not own — specifically, vehicles rented or leased on a short-term basis ("hired") and vehicles owned by employees or other third parties that are used for business purposes ("non-owned"). In [[Definition:Commercial insurance | commercial insurance]] underwriting, this distinction matters because a business's [[Definition:Liability | liability]] exposure extends beyond the fleet it titles and registers; any vehicle operated on behalf of the organization can generate [[Definition:Vicarious liability | vicarious liability]] claims against it.

⚙️ From an [[Definition:Underwriting | underwriting]] perspective, hired and non-owned auto [[Definition:Exposure | exposure]] is evaluated based on the nature of the business, the frequency of employee driving for work, and the extent of rental vehicle use. A consulting firm whose employees drive personal cars to client sites and occasionally rent vehicles for out-of-town engagements presents a very different risk profile than a construction company with crews using personal trucks to haul materials. The [[Definition:Insurance carrier | carrier]] assesses whether the organization has formal vehicle use policies, whether employees carry adequate personal [[Definition:Auto insurance | auto insurance]], and how the business manages [[Definition:Driver qualification | driver eligibility]]. [[Definition:Premium | Premiums]] are typically modest compared to owned-fleet coverage, but the underlying [[Definition:Claim | claims]] potential can be significant — a serious accident in a rented vehicle or an employee's car during a work errand can produce [[Definition:Bodily injury liability | bodily injury]] verdicts well into the millions.

📌 Businesses that overlook this category of coverage often discover the gap only after a loss, which makes it one of the most commonly discussed items during a [[Definition:Coverage review | coverage review]] or [[Definition:Risk assessment | risk assessment]]. An employee's personal auto policy is primary in most non-owned auto scenarios, but it may carry limits far below what a [[Definition:Plaintiff | plaintiff's]] attorney will pursue, and the employer's [[Definition:General liability insurance | general liability policy]] typically excludes auto-related claims. Hired and non-owned auto coverage fills that gap, responding on an [[Definition:Excess insurance | excess]] or [[Definition:Primary insurance | primary]] basis depending on the circumstances. For [[Definition:Insurance broker | brokers]] and [[Definition:Risk manager | risk managers]], ensuring this coverage is in place is a straightforward but essential step in building a comprehensive [[Definition:Commercial insurance program | commercial insurance program]].

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Commercial auto insurance]]
* [[Definition:Vicarious liability]]
* [[Definition:Hired and non-owned auto coverage]]
* [[Definition:General liability insurance]]
* [[Definition:Business auto policy (BAP)]]
* [[Definition:Excess insurance]]
{{Div col end}}

Definition:Hired and non-owned auto - Revision history

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