Hired and Non-Owned Coverage

Hired and non-owned auto insurance can be essential to a company’s risk management strategy. It may offer protection to help cover the company’s liabilities associated with using rented, leased or employee-owned vehicles.  

What Is Hired and Non-Owned Auto Insurance? 

Hired and non-owned auto insurance is designed to provide liability protection for businesses when using a vehicle not owned by the company for business-related activities. Michigan companies using vehicles to conduct business must maintain minimum amounts of state-required auto liability insurance. This coverage is crucial when an employee is driving a rented car for work or using their personal vehicle to perform business tasks. 

Hired vehicles typically include those leased, hired, rented or borrowed by your business, while non-owned vehicles are usually employees’ personal cars used for business purposes. It’s worth noting this insurance may only help cover liability claims and may not extend to physical damage to the vehicle itself. 

Why Businesses Need Hired and Non-Owned Coverage 

Businesses might need this coverage for several reasons, including the following:  

• Risk management—This coverage protects the business from significant financial burdens in case of an accident involving a non-owned or hired vehicle. 
• Compliance—This coverage ensures adherence to Michigan’s regulations regarding commercial vehicle insurance. 
• Financial protection—This coverage helps safeguard the business’s financial stability by potentially covering legal costs and damages arising from claims. 

Getting the Right Coverage 

Choosing the right hired and non-owned auto insurance involves understanding your business’s specific needs and risks. Coverage can vary based on several factors, including the nature of your business activities, the frequency of non-owned or hired vehicle use, and the type of vehicles involved. 

Contact Us 

Companies near Ann Arbor or Brighton, Michigan, that use non-owned vehicles for business purposes should consider hiring and non-owned auto insurance options. Active Insurance Agency is here to help you navigate these decisions, offering tailored advice and insurance solutions that align with your company’s unique needs. 

For a detailed discussion or to get a quote on hired and non-owned auto insurance, reach out to Active Insurance Agency. Our team is committed to providing you with the knowledge and options you need to make informed insurance decisions for your business. 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.