Workers' Comp & Auto · Insurance Term
Hired and Non-Owned Auto (HNOA)
Definition
Hired and non-owned auto (HNOA) coverage protects your business from liability when someone uses a vehicle your business does not own for business purposes. That includes rented vehicles and employees' personal cars used for errands, bank runs or trips between properties.
In Plain English
If an employee crashes their own car while running a work errand, the injured person may sue your business as well as the driver. Your general liability policy almost always excludes auto accidents. HNOA fills that gap by covering your business's liability when it uses vehicles it does not own.
Hired autos are vehicles you rent, lease short-term or borrow. Non-owned autos are vehicles owned by employees or others that are used in your business. On a commercial auto insurance policy, this coverage is shown with covered auto symbols, commonly symbols 8 and 9. It can also be added to some package policies as an endorsement.
HNOA usually covers liability only. It generally does not pay to fix the employee's car, and the employee's own auto policy is usually expected to respond first. Many umbrella insurance policies require HNOA as underlying coverage before they will extend over auto claims.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a property manager drives her own car to deliver rent checks to the bank and causes a crash with serious injuries. Her personal auto policy pays its limit, but the injured driver also sues the property company. With HNOA in place, the company's policy may respond to its liability above or alongside her coverage, subject to its terms.
What to Watch For
- Ask whether you have HNOA today, and on which policy it appears.
- List who drives for the business, even occasionally, including managers and maintenance staff.
- Check that your umbrella policy schedules HNOA as underlying coverage.
- Remember HNOA usually does not cover damage to the borrowed or employee vehicle itself.
Common Questions
I don't own any business vehicles. Do I still need HNOA?
Many businesses without company vehicles still have employees or managers who drive for work. HNOA is often the only coverage for the business's own liability in that situation, and it is usually inexpensive to add.
Does HNOA cover damage to a rental car?
Usually not. HNOA is generally liability coverage. Physical damage to a rented vehicle typically needs separate hired auto physical damage coverage or the rental company's protection.
Last updated October 14, 2026 · Primesure editorial team · How We Write