What Happens If Your Employee Crashes Their Personal Car While on the Job?

Introduction

‍Your business auto policy likely covers company vehicles, but what if an employee uses a personal car for a work errand and gets into an accident? Many owners are surprised to learn the business can still be liable. This is where Hired and Non-Owned Auto (HNOA) coverage comes in.

The Real-Life Scenario

Imagine this:

Your office manager runs out to grab supplies in a personal vehicle during work hours. On the way back, they are involved in a fender bender.

Even though you do not own the car, your business could still be pulled into the claim or lawsuit.

What Is HNOA Coverage?

Hired Auto: Covers vehicles your business rents, leases, or borrows for work.

Non-Owned Auto: Covers an employee’s personal car when it is used for a job-related task.

Think of HNOA as a liability cushion. It does not replace personal auto insurance. It helps protect your business from lawsuits and covered damages when a rented or personal vehicle is used for work.

Why It Matters

• Personal auto policies often exclude business use
• Your company can still be named in a lawsuit
• HNOA adds a legal and financial backstop in these situations

Who's at Risk?

‍Any company that lets employees:

• Make deliveries or bank deposits
• Pick up supplies or equipment
• Visit clients or job sites
• Use a personal car in any way to represent the business

Even if it happens only once in a while, the exposure exists.

How to Get Covered

• Ask your agent if HNOA is included in your commercial auto policy or available by endorsement
• It is often available as an affordable add-on
• Confirm that employees carry adequate personal auto insurance as well

Final Thoughts

If your team ever drives personal vehicles for work, HNOA is not optional. It is essential. Do not wait until an accident exposes a coverage gap. Talk to your AETOS advisor today to make sure you are protected.