Hired & Non-Owned Auto Insurance in Murrells Inlet, South Carolina

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance (HNOA) covers your business when employees use vehicles you don't own for work purposes. This includes both rental cars (hired autos) and employees' personal vehicles (non-owned autos). L. W. Short Insurance Agency's insurance agents help you understand how this coverage protects your business from liability gaps.

Many business owners assume their commercial auto policy covers all vehicle-related risks. But if an employee runs a work errand in their personal car and causes an accident, your commercial auto policy won't respond. That's where HNOA coverage steps in. It provides liability protection when employees drive vehicles not listed on your commercial auto policy.

This coverage applies to hired autos like rental cars your employees use during business travel. It also covers non-owned autos when your employees drive their personal vehicles for business purposes—picking up supplies, making deliveries, meeting clients, or running errands. Without this protection, your business faces exposure from lawsuits and liability claims that other policies won't cover.

HNOA is typically added as an endorsement to your commercial general liability policy or business owner's policy. It provides excess liability coverage over the driver's personal auto policy. If the employee's personal insurance isn't sufficient to cover damages, your HNOA coverage kicks in to protect your business assets.

What Does Hired & Non-Owned Auto Insurance Cover?

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

Hired Auto Coverage

• Rental vehicle liability: When employees rent cars for business purposes, this covers bodily injury and property damage they cause to others
• Hired vehicle physical damage: Optional coverage for damage to the rental vehicle itself
• Business travel protection: Coverage applies during conferences, client visits, sales calls, and other business travel
• Short-term and long-term vehicle rentals for business use

Non-Owned Auto Coverage

• Employee personal vehicle use: Liability coverage when employees use their own cars for work-related tasks
• Bodily injury liability: Medical expenses, lost wages, and legal defense if an employee injures someone while driving for work
• Property damage liability: Covers damage to other people's property caused by an employee driving their personal vehicle on company business
• Legal defense costs: Attorney fees, court costs, and settlements related to covered claims

What's Not Covered

Understanding the exclusions helps you identify gaps in your coverage:

• Vehicles listed on your commercial auto policy (use commercial auto insurance instead)
• Damage to the employee's personal vehicle (their personal auto policy covers this)
• Employees commuting to and from work (personal auto insurance applies)
• Intentional acts or criminal behavior
• Workers' compensation claims (you need a separate workers comp policy)

HNOA provides excess coverage over the driver's personal auto insurance. If the employee's personal policy limits are exhausted, your HNOA coverage responds to protect your business from additional liability.

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

The cost of hired and non-owned auto coverage varies based on your business's specific risk profile. Since every company faces different exposure levels, you'll need a personalized quote to understand your actual premium.

Factors That Affect Your Premium

Several elements influence what you'll pay for HNOA coverage:

Number of employees who drive for business: More drivers mean greater exposure and higher premiums. Insurers look at how many employees regularly use personal or rental vehicles for work-related activities.

Frequency of business driving: Companies whose employees drive daily face higher costs than businesses with occasional business travel. The more time your team spends on the road, the greater the risk.

Rental car usage: How often your business rents vehicles impacts your premium. Frequent rentals for conferences, travel, or temporary transportation needs increase your exposure.

Coverage limits: Higher liability limits provide more protection but cost more. You'll choose limits that balance adequate protection with your budget. Common limits range from $500,000 to $1 million or more.

Your industry and operations: Some businesses face higher risks than others. Real estate agents, home health care providers, and consultants who regularly use personal vehicles may pay different rates than office-based businesses with minimal driving.

Claims history: A clean track record with no prior claims typically results in lower premiums. Previous accidents or liability claims can increase your costs.

Ways to Potentially Lower Your Premium

You can take steps to manage your HNOA costs. Bundling this coverage with your other business policies often provides discounts. Implementing driver safety programs and vehicle use policies demonstrates risk management. Shopping multiple carriers through an independent agent like L. W. Short Insurance Agency helps you compare options and find competitive rates.

Do I Need Hired & Non-Owned Auto Insurance?

If employees ever drive for work in vehicles not owned by your company, you need HNOA coverage. This applies to more businesses than most owners realize.

Business Scenarios That Require Coverage

You need hired and non-owned auto insurance if your business involves any of these situations:

Employees use personal vehicles for work: Your team runs errands, picks up supplies, makes bank deposits, delivers documents, or visits clients using their own cars. Even occasional business use creates liability exposure for your company.

Your business rents vehicles: Employees rent cars for conferences, client meetings, sales calls, or business travel. The rental company's insurance provides minimal coverage, leaving your business exposed to significant liability.

You don't own company vehicles: Many small businesses operate without a company fleet. If your employees drive for any work purpose in their personal vehicles, you're liable for accidents that occur during business activities.

Contractors or temporary workers drive for you: Even if someone isn't a full-time employee, your business can be held liable when they drive for work purposes.

Industries That Commonly Need HNOA

Certain types of businesses in Murrells Inlet face higher exposure from employee driving:

• Real estate agencies whose agents drive to property showings
• Home health care providers visiting patients
• Consulting firms with client site visits
• Sales representatives traveling to customer locations
• Contractors picking up materials and supplies
• Non-profits with volunteers who drive for programs
• Professional services firms where staff attend off-site meetings

Even if driving isn't your primary business activity, you're still liable when employees drive for work. Your commercial general liability or business owner's policy won't cover auto liability—you need specific hired and non-owned auto coverage to protect your business from this risk.

How to Get Hired & Non-Owned Auto Insurance in Murrells Inlet

Getting HNOA coverage for your Murrells Inlet business starts with understanding your specific exposure. Take inventory of how employees use vehicles for work. Count how many employees drive their personal cars for business and how often your company rents vehicles.

South Carolina Insurance Requirements

While South Carolina doesn't specifically mandate hired and non-owned auto insurance, businesses remain legally liable for accidents involving employees driving for work purposes. This creates financial risk that can threaten your business assets. Even if state law doesn't require it, protecting your business from this exposure makes sound financial sense.

South Carolina requires minimum liability coverage for all vehicles operated in the state. When employees use personal vehicles for work, their personal auto insurance provides primary coverage. However, those limits often aren't sufficient to cover serious accidents. Your business becomes responsible for damages exceeding the employee's personal policy limits.

Working with an Independent Agent

The easiest way to secure HNOA coverage is through an independent insurance agent who works with multiple carriers. L. W. Short Insurance Agency represents several top-rated insurance companies serving Murrells Inlet businesses. This means you get quotes from multiple carriers without making separate calls.

An independent agent evaluates your specific risk profile and recommends appropriate coverage limits. They can add HNOA to your existing business owner's policy or general liability policy as an endorsement, keeping your insurance costs manageable while closing coverage gaps.

Information You'll Need

When requesting quotes, be ready to provide details about your business operations, number of employees who drive for work, frequency of business driving, typical rental car usage, and your desired coverage limits. This information helps agents provide accurate quotes tailored to your needs.

Most businesses can add HNOA coverage to existing policies quickly, often within days. The process is straightforward when you work with an experienced agent who understands your industry and South Carolina insurance requirements.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your Murrells Inlet business from hired and non-owned auto liability doesn't have to be complicated or expensive. L. W. Short Insurance Agency makes it easy to compare coverage options from multiple carriers.

We understand the unique needs of South Carolina businesses and the specific risks you face when employees drive for work. Whether your team occasionally uses personal vehicles for errands or frequently rents cars for business travel, we'll help you find coverage that fits your operations and budget.

Ready to protect your business from vehicle liability gaps? Contact our team for a free quote today. We'll review your business activities, explain your coverage options, and provide competitive quotes from top-rated insurance carriers. Get the protection your business needs without overpaying for coverage you don't.