Most trucking companies focus on their commercial auto policy — the one covering their trucks and trailers. But there's a separate exposure that catches companies off guard: what happens when an employee drives a vehicle you don't own for business purposes? This is where hired and non-owned auto (HNOA) coverage comes in. It's inexpensive, often overlooked, and can prevent a catastrophic uninsured loss. What "Hired Auto" Means Hired auto coverage applies to vehicles you rent, lease short-term, or borrow for business use. Common scenarios in trucking: - Renting a pickup truck to drive to a shipper meeting - Leasing a temporary replacement vehicle while your truck is in the shop - Renting a car for a business trip to a carrier appointment - Using a rental while deadheading to pick up a load Your commercial auto policy covers scheduled vehicles — the trucks and trailers listed on your policy. A rental car or short-term lease isn't scheduled, so it's not covered unless you have hired auto coverage. What "Non-Owned Auto" Means Non-owned auto coverage applies when an employee uses their personal vehicle for business purposes. In trucking, this happens more than you'd think: - A dispatcher drives their personal car to deliver paperwork to a shipper - A driver uses their personal vehicle to run to the parts store for the truck - An office employee drives to the bank to make a company deposit - A mechanic uses their car to pick up parts from a supplier If that employee causes an accident while on company business, the injured party can sue your company — even though the vehicle isn't yours. Without non-owned auto coverage, you're defending that lawsuit out of pocket. Why Your Personal Auto Policy Doesn't Help The employee's personal auto policy is primary for their own vehicle. But when they're on company business, the injured party's attorney will name your company as a defendant under the legal doctrine of "respondeat superior" — employer liability for employee actions within the scope of employment. Your company needs its own coverage to respond to that claim. That's what non-owned auto provides. What HNOA Covers Liability only — HNOA covers bodily injury and property damage you cause to others. It does not cover physical damage to the hired or non-owned vehicle itself. Excess over other insurance — HNOA typically pays after the vehicle owner's insurance is exhausted. If your employee's personal policy has $100K limits and the claim is $500K, HNOA covers the $400K excess. Defense costs — HNOA includes a duty to defend, meaning your insurer provides and pays for legal defense. What HNOA Doesn't Cover - Physical damage to the rented/borrowed vehicle (buy the rental company's CDW or add a hired auto physical damage endorsement) - Vehicles you own but forgot to schedule on your policy - Long-term leases (these should be scheduled on your commercial auto policy) - Vehicles used by independent contractors (they need their own coverage) How Much Does It Cost? HNOA is one of the cheapest coverages in trucking. Typical premiums: - Small operations (1-5 employees): $200-500/year - Medium fleets (6-20 employees): $500-1,500/year - Larger operations: $1,500-3,000/year The cost depends on your number of employees, annual revenue, and whether you frequently rent vehicles. Who Needs HNOA? Every trucking company with employees needs non-owned auto coverage. Period. If anyone ever drives any vehicle for any business purpose, you have the exposure. You need hired auto coverage if you ever: - Rent vehicles for business use - Borrow vehicles from other companies - Use short-term leases for temporary equipment The General Liability Confusion Some carriers assume their general liability policy covers auto accidents involving non-owned vehicles. It doesn't. General liability specifically excludes auto-related claims. You need a separate HNOA policy or endorsement. How to Add HNOA HNOA can be added as: - An endorsement to your commercial auto policy (most common) - An endorsement to your general liability policy - A standalone policy (rare, usually only for companies with no owned vehicles) We typically add it to the commercial auto policy because it keeps all auto-related coverages in one place and simplifies claims reporting. Trux Recommendation We include HNOA in every commercial auto policy we write unless the client specifically declines it. The cost is minimal, the exposure is real, and the consequences of being uninsured are severe. It's one of those coverages where the question isn't "can I afford it?" — it's "can I afford not to have it?"