Hired & Non-Owned Auto Insurance in Lubbock, Texas

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance covers your business if an employee causes an accident while driving a vehicle your company doesn't own. This includes employees using their personal cars for work errands or rental vehicles for business trips. LSM Insurance Agency's agents help Lubbock businesses fill the liability gap that standard commercial auto policies don't cover.

This coverage has two parts. Hired auto insurance protects you when employees drive rental or leased vehicles for business purposes. Non-owned auto insurance covers liability when employees use their personal vehicles for work-related tasks. Together, they protect your business from claims that exceed the driver's personal auto policy limits or situations where their personal insurance denies coverage for business use.

Most businesses don't realize their commercial general liability policy won't cover auto accidents. Your employee's personal auto insurance is primary in most cases, but if damages exceed their limits, injured parties can sue your business directly. That's where HNOA coverage becomes essential.

This insurance isn't a substitute for commercial auto coverage. If your company owns vehicles, you need a commercial auto policy. Hired and non-owned auto insurance supplements your existing coverage by addressing the risks from vehicles you don't own but that employees use for business purposes.

What Does Hired & Non-Owned Auto Insurance Cover?

Hired and non-owned auto coverage protects your business from liability claims when employees drive vehicles you don't own. Here's what this policy typically covers:

• Bodily injury liability: Medical expenses, lost wages, and legal costs if an employee injures someone while driving for work
• Property damage liability: Repair or replacement costs if an employee damages another person's vehicle or property
• Legal defense costs: Attorney fees, court costs, and settlements even if the claim is groundless
• Rental vehicle accidents: Coverage when employees rent cars, trucks, or vans for business trips or errands
• Personal vehicle business use: Protection when employees use their own cars for work-related driving
• Excess liability: Additional coverage above the employee's personal auto policy limits

This coverage applies in specific situations. Your employee must be driving for business purposes when the accident occurs. Running to the bank to deposit company checks counts. Commuting to and from work typically doesn't. The policy kicks in as secondary coverage after the driver's personal auto insurance pays its limits.

You'll find important exclusions to understand. Hired and non-owned auto insurance doesn't cover damage to the vehicle your employee was driving. It won't pay for your employee's injuries. Physical damage coverage for rental vehicles often requires a separate endorsement. The policy also excludes vehicles owned by you, your employees, or their household members.

Coverage limits work differently than standard auto policies. You'll see limits expressed as a single combined limit or split limits for bodily injury and property damage. Most businesses carry at least $1 million in coverage, though your specific needs depend on your industry and risk exposure.

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

Several factors influence what you'll pay for hired and non-owned auto coverage. Insurance carriers evaluate your business's specific risk profile to determine your premium.

The number of employees who drive for business matters significantly. More drivers mean more potential exposure, which increases your cost. Carriers also consider how often your employees drive for work purposes. A real estate agent who drives daily to show properties presents different risk than an accountant who occasionally visits clients.

Your coverage limits directly affect your premium. Higher limits provide more protection but cost more. Most Lubbock businesses balance adequate protection with budget constraints by selecting limits that align with their industry standards and risk exposure.

Your claims history plays a role in pricing. Businesses with clean records often qualify for better rates. Previous auto-related claims against your company signal higher risk to underwriters, which can increase premiums.

Industry type influences rates because some businesses face more driving-related risk. Service contractors, sales representatives, and delivery businesses typically pay more than office-based businesses where employees rarely drive for work.

The types of vehicles employees drive matter too. Renting large moving trucks periodically creates different risk than employees driving their sedans to meetings. Frequency of rental vehicle use affects your cost calculation.

You can potentially lower your premium through several strategies. Bundling hired and non-owned auto coverage with your existing business policies often results in package discounts. Implementing driver safety programs and requiring background checks on employees who drive for business may qualify you for reduced rates. Higher coverage limits purchased upfront sometimes cost less than adding coverage later.

Getting quotes from multiple carriers helps you find competitive rates. As an independent agency, LSM Insurance Agency compares pricing from several insurers to identify the best value for your specific situation.

Do I Need Hired & Non-Owned Auto Insurance?

You need this coverage if employees ever drive for your business using vehicles you don't own. Many business owners underestimate their exposure until a claim happens.

Consider these scenarios where you're at risk. Your sales representative drives to a client meeting in her personal car and causes a rear-end collision. Your employee rents a truck to pick up supplies and backs into a parked vehicle. A team member runs to the post office during lunch to mail company documents and hits a pedestrian. In each case, injured parties can sue your business for damages that exceed the driver's personal auto insurance.

Certain business types face higher exposure. Real estate agents regularly transport clients in personal vehicles. Consultants travel to client sites for meetings. Catering companies send employees to pick up ingredients. Service businesses dispatch technicians who drive their own trucks to job sites. Sales teams travel extensively for presentations and conferences.

Even office-based businesses need protection. You're exposed whenever an employee makes a bank deposit, delivers documents, picks up office supplies, or attends an off-site meeting using a vehicle you don't own. These everyday business tasks create liability risk.

Some situations require this coverage by contract. Commercial leases and client agreements often mandate hired and non-owned auto insurance. General contractors typically require it from subcontractors. Franchise agreements may stipulate this coverage as a condition of your contract.

The financial risk is substantial without coverage. Personal auto policies often exclude business use or provide minimal coverage. If an employee causes serious injuries while driving for your business, you could face six-figure or seven-figure judgments. Your business assets, including equipment, inventory, and bank accounts, become vulnerable to satisfy these claims.

This coverage costs relatively little compared to the protection it provides. Most businesses add it as an endorsement to their existing commercial policy for a reasonable annual premium. The peace of mind and financial protection make it a worthwhile investment.

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

Getting hired and non-owned auto coverage in Lubbock starts with understanding Texas requirements and your business's specific needs. While Texas doesn't mandate HNOA insurance for most businesses, the liability risk from employee driving makes it essential protection.

Start by documenting which employees drive for business purposes and how often. Include employees who use personal vehicles for errands, team members who rent vehicles for work travel, and anyone who drives to client meetings or job sites. This information helps carriers assess your risk accurately.

Review your existing insurance policies before shopping for coverage. Check your commercial general liability policy—it won't cover auto accidents. Examine your commercial auto policy if you have one—it only covers vehicles you own. Identify the gaps in your current protection.

Consider how this coverage integrates with other policies. Many businesses add hired and non-owned auto insurance as an endorsement to their existing commercial general liability policy. This approach often costs less than purchasing a standalone policy and simplifies your insurance management.

Determine appropriate coverage limits based on your risk exposure. Consider the types of driving your employees do, the areas where they drive, and your industry's typical claim severity. Businesses with extensive employee driving typically carry higher limits than those with minimal vehicle use.

Working with an independent insurance agency gives you access to multiple carriers and coverage options. LSM Insurance Agency represents several insurers who offer hired and non-owned auto coverage to Lubbock businesses. We compare policies, coverage features, and pricing to identify the best fit for your situation.

Gather necessary information before requesting quotes. Carriers typically ask about your business operations, number of employees, annual revenue, previous claims, and how often employees drive for work. Having this information ready speeds up the quoting process.

Review policy details carefully before purchasing. Check coverage limits, exclusions, and any conditions that might limit protection. Understand what's covered and what isn't. Ask questions about any confusing terms or provisions.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your Lubbock business from auto liability shouldn't be complicated. Hired and non-owned auto insurance fills a critical gap in your coverage when employees drive vehicles you don't own.

LSM Insurance Agency makes it easy to get the coverage you need. We compare quotes from multiple carriers to find you competitive rates without sacrificing protection. Our team understands the unique risks Lubbock businesses face and recommends coverage that makes sense for your budget and operations.

You'll get straightforward advice without pressure or confusing jargon. We explain your options clearly, answer your questions directly, and help you make informed decisions about protecting your business.

Ready to get started? Contact our team for a free quote today. We'll review your current coverage, identify any gaps, and provide quotes from top-rated carriers. Getting protected takes just minutes, and you'll have confidence knowing your business is covered when employees drive for work.