Do I need HNOA if my business owns no vehicles?
Often, yes. If employees ever drive their own cars or rentals for work, the business can be sued after a crash, and HNOA is typically the auto coverage that responds.
Coverage · Hired & non-owned
Hired and non-owned auto insurance in California
Liability protection designed for your business when work gets done in vehicles it doesn't own: an employee's car on a supply run, a project manager's SUV between sites or a truck rented for a big job.
Quick answer
Hired and non-owned auto (HNOA) coverage generally protects your business when it's sued over a crash in a vehicle it doesn't own: an employee's personal car on a work errand or a vehicle you rented or borrowed. The driver's own policy usually pays first, and HNOA can cover the business beyond that. It typically doesn't repair the employee's car or the rental, and it's normally written at the same liability limit as the rest of your auto policy.
How it works
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- We shop top-rated national carriers with one submission.
- You compare options side by side; we bind and the carrier handles filings, if needed.
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01Hired and non-owned: two halves of one coverage
The name covers two different situations. Hired auto coverage generally applies to vehicles your business rents, leases short-term or borrows: a box truck from a rental counter for a large install, a pickup borrowed from a subcontractor, a car rented on a trip to a job in Fresno. Non-owned auto coverage typically applies to vehicles the business doesn't own, rent or borrow but that are used for its work, which mostly means employees driving their own cars.
In both cases, the people suing after a crash tend to name the business, because it usually has more insurance than the driver. Without HNOA, the company may have no auto policy that responds to those claims. That can be true even for a business that owns no vehicles at all, and some carriers will write hired and non-owned coverage on its own for exactly that situation.
Most businesses add it to the business auto policy that already covers their owned trucks; the full set of coverages is on our business vehicle insurance quote page. The Department of Insurance's commercial guide describes that flexibility in its own words: A business auto policy can cover business, personal, non-owned or hired autos, depending on the coverage purchased.
Official sources
- CDI, Commercial Insurance Guide (opens in a new tab) Verified 2026-10-14
02What HNOA usually pays for and what it doesn't
| Generally pays for | Usually doesn't pay for |
|---|---|
| Claims against your business when an employee crashes their own car on a work errand | Repairs to the employee's car |
| Claims against your business from a crash in a rented, leased or borrowed vehicle | Damage to the rental itself, unless you add hired auto physical damage |
| Your legal defense in those suits | The employee's own liability, which their personal policy handles |
| Protection above the vehicle owner's insurance once that runs out | Vehicles you own or lease long-term, which belong on the schedule |
The order of payment matters. When an employee crashes their own car, their personal auto policy is usually first in line, and HNOA generally responds once that policy's limit is used up or when the claim is aimed at the business itself. That sequence traces to Insurance Code section 11580.9, which generally treats the policy listing a car as an owned auto as primary and other insurance as excess. On rentals, the owner's insurance and any coverage bought at the counter can come into the picture too.
Official sources
03Who needs it, by trade
Engineering firms
Engineers, inspectors and surveyors often drive their own cars to project sites, sometimes daily. That steady non-owned exposure makes HNOA close to essential for engineering firm commercial auto insurance, even when the firm owns a single survey truck.
General contractors
Project managers and superintendents often drive personal pickups with a car allowance. If one of them runs a light between job sites, the injured driver's attorney will likely look at the GC as well; see contractor vehicle insurance.
Breweries
Sales reps visiting bars and restaurants in their own cars create non-owned exposure even when the kegs travel in company vans; see beverage distributor van insurance.
Cabinet makers and installers
A shop that rents a larger box truck for a big install has a hired auto exposure for that week, and the rental agreement may push liability back onto the business; see box truck insurance for cabinet makers.
Service trades
An HVAC dispatcher who runs a part to a technician in their own car and a plumber driving a rental while the service truck is in the shop are both situations HNOA is built for. See insurance for HVAC service vans.
04Limits for hired and non-owned
HNOA is usually written at the same limit as the liability on your owned vehicles, and we price both starting at a $1 million combined single limit. Lower limits of $300,000, $500,000 and $750,000 are generally available, and a business with no owned vehicles can choose the limit on its own. Customers' contracts often require hired and non-owned coverage by name, next to owned-auto liability.
Because the employee's own insurance usually pays first, it's worth knowing what they carry. Many businesses ask employees who drive for work to show proof of personal auto insurance each year, at limits the business sets in its vehicle policy.
For how liability limits work in general, see how much auto liability a fleet needs. Businesses with only a few vehicles often add HNOA as readily as larger fleets; our page on business auto insurance for 1 to 4 vehicles covers that size.
05When an employee's car should be listed instead
HNOA generally fits occasional and incidental use. It's a less comfortable fit when an employee's vehicle has effectively become a company vehicle: driven for work every day, paid for or fueled by the business, wrapped in signage or driven by other employees. At that point, many carriers would rather see the vehicle owned by the business and scheduled.
We go through that choice in hired and non-owned vs listing employees' cars. If the answer is to buy the vehicle, it's usually a pickup, and our contractor pickup insurance page covers how it's rated.
06Rentals and borrowed trucks
Renting is where hired auto coverage earns its keep. A contractor who rents a dump truck for a week, or a distributor that rents an extra box truck in December, has liability exposure the moment the truck leaves the lot. Hired auto liability generally answers for that; damage to the rented truck itself usually needs hired auto physical damage, which some carriers add to the policy and others leave to the rental counter.
Long-term leases are different. A truck leased for months at a time is normally treated like an owned vehicle and listed on the schedule with its own physical damage; see commercial truck physical damage insurance.
07More trades we insure
- Security system installer van insurance
- Insurance for drill and vac trailers
- Electrical contractor commercial auto insurance
- Insurance for flooring crews' vans
- Framing contractor commercial auto insurance
- Landscaping truck and trailer insurance
Show all 14 trades
- Insurance for painting crews' vans and pickups
- Insurance for paving crews' trucks and trailers
- Insurance for pest control service trucks
- Plumber van insurance in California
- Insurance for pool builders' trucks
- Insurance for roofers' flatbeds and dump trailers
- Welding truck insurance
- Supplier delivery truck insurance
Hired and non-owned, in brief
Assuming the employee's insurance is enough
Personal policies may carry low limits or exclude business use. Once they run out, the claim can move to the business.
Ask for proof each year
A simple rule that employees who drive for work show current personal auto insurance can help protect both sides and costs little.
The rental's damage is usually separate
HNOA generally covers liability, not the rented truck. Add hired auto physical damage or buy the rental company's damage waiver.
Coverage
Every business auto coverageOther coverages on a business auto policy
Commercial auto liability
Commercial auto liability limitsPhysical damage
Commercial truck physical damage insuranceMotor truck cargo
Motor truck cargo insuranceUninsured motorist
Uninsured motorist coverage for business vehiclesPrefer a call?
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What happens next
- We review your fleet and call to confirm details.
- We shop top-rated national carriers with one submission.
- You get options side by side; we bind and the carrier handles filings, if needed.
Timing depends on the carriers and your loss history.
Have ready: vehicle list with VINs, driver list, current declarations page, loss runs.
Hired and non-owned questions
What is hired and non-owned auto insurance?
It's liability coverage for your business when a vehicle it doesn't own is used for its work, such as an employee's personal car or a rental. It can pay claims against the business and its defense.
Does hired and non-owned cover damage to my employee's car?
Generally not. Damage to the employee's car is usually handled by their own collision coverage. HNOA is aimed at liability claims against the business.
Can I buy hired and non-owned without owning any vehicles?
In many cases, yes. Some carriers write it on its own for businesses with no owned vehicles, and others add it to a business auto policy.
Who pays first when an employee crashes on a work errand?
Usually the employee's personal auto policy. HNOA can respond when that policy runs out or when the claim is aimed at the business.
Does HNOA cover a truck I rent for a week?
It typically covers liability while you use it. Damage to the rental itself generally calls for hired auto physical damage or the rental company's waiver.
Do contracts ask for hired and non-owned coverage?
Many do, listed beside owned-auto liability at the same limit, usually $1 million. Send us the contract language, and we'll request it from the carrier at the limit the contract names.