Commercial Auto or Hired & Non-Owned Auto Insurance
for IT Businesses, Consultants & Subcontractors

Does your computer, web, or IT service business need to add a Commercial Auto or Hired & Non-Owned Auto Insurance policy to its small business insurance plan? If you ever drive vehicles for work, the answer is likely "yes."

Perhaps your computer retail store offers at-home repair or educational services. Or maybe your web development company only uses vehicles when someone runs for daily coffee or other errands. No matter the case, there is an Auto Insurance policy for you.

Commercial Auto and Hired & Non-Owned Auto Insurance policies are important protections to consider because most Personal Auto Insurance policies exclude coverage for business vehicles and business driving on personal vehicles. And most small businesses aren't financially flush enough to handle the high cost of an auto accident — especially if there are medical and/or legal expenses involved.

Did you know that accidents are more likely to happen to individuals on the job than those who are off the clock? It's true. Experts estimate that every year, traffic-related accidents cost employers nearly $60 million.

No matter how little or how carefully you and your employees drive, you take a risk every time you hit the road. That's because there are certain uncontrollable factors at play when you find yourself behind the wheel, including other drivers, some of whom may be distracted or impaired.

And that's why insurance providers designed Commercial Auto and Hired & Non-Owned Auto Insurance. But before you can add one to your small business insurance plan, you'll need to understand the differences between the two.

Commercial Auto vs. Hired & Non-Owned Auto: What's the Difference?

Commercial Auto vs. Hired & Non-Owned Auto: What's the Difference?

How will you decide whether Commercial Auto or Hired & Non-Owned Auto Insurance is right for your computer, web, or IT services firm? Read on to find out. And be aware that, depending on your business's needs, you may want to add both types of coverage to your business protection plan.

Commercial Auto Insurance for Computer, Web, and IT Service Professionals.

Commercial Auto Insurance is best for computer, web, and IT service professionals who operate business vehicles owned by the business. A business vehicle usually takes one of three forms:

  • A vehicle you drive exclusively for work. For example, this might be the service vans you and your employees use to drive to client's houses.
  • A vehicle you lend to employees. Perhaps your business lends a "company car" to upper management. It's illegal for employers to make employees carry their own insurance on company-owned vehicles.
  • A personal vehicle that you use for work. Many small-business owners fall into this category, especially if they are independent contractors or only occasionally use their personal vehicle for work.

The reason folks need a Commercial Auto Insurance policy when they drive their personal vehicles for work is a good one: Your Personal Auto Insurance policy likely excludes coverage for accidents that happen when you are driving for work.

This means that if you're driving to a client's office for a meeting and hit a deer, your Personal Auto Insurance provider can legally deny coverage for the accident.

In sum, Commercial Auto Insurance only protects owned vehicles. If anyone in your business drives vehicles for business purposes that aren't owned by the business, then you may want to consider a Hired & Non-Owned Auto Insurance policy.

Hired & Non-Owned Auto Insurance for Computer, Web, and IT Service Professionals

Your computer, web, or IT service firm needs Hired & Non-Owned Auto Insurance if you frequently rent / hire vehicles. This coverage can also protect employees and their personal vehicles when you ask them to drive for business purposes.

Remember: Your employees' Personal Auto Insurance policies may not protect them in the event of work-related accident.

Sometimes it may not seem that your business rents or hires vehicles that often, but consider the following situations:

  • Needing to rent a car after flying to another city on business.
  • Hiring a car to pick up a client.
  • Renting a limo to take the office to an industry-related event.
  • Using a car-sharing service.

At this point, you may be thinking that rental and car-sharing services usually offer car insurance — either for an extra fee or for "free." But those fees add up — a Hired & Non-Owned Auto Insurance policy is usually quite affordable by comparison. Some providers even let you bundle it with your General Liability Insurance.

Another thing to consider is the amount of extra security you get with a Hired & Non-Owned Auto Insurance policy. Those car-sharing services might offer "free" insurance, but there tends to be a cap. According to this New York Times article, one popular car-sharing service caps its benefits at $300,000 per accident. That sounds like a lot, but trust us, that isn't much for a multi-person accident.

Additionally, the bodily injury coverage on those policies does not tend to be great. They usually only comply with the state-mandated minimum requirements — which is a big concern for people who may be driving with little health insurance.

How Commercial Auto or Hired and Non-Owned Auto Insurance Can Protect Your Business

How Commercial Auto or Hired and Non-Owned Auto Insurance Can Protect Your Business

When you purchase a Commercial Auto or Hired & Non-Owned Auto Insurance policy for your computer, web, or IT business, it helps your business subsidize the costs associated with vehicle-related incidents. Some of these may include:

  • Traffic accident. Your coverage can pay for vehicle damage — both yours and the other involved party's — up to your policy's stated limits.
  • Other collisions. This may be collisions with things like lamp posts, fire hydrants, guardrails — you get the idea.
  • Medical bills. Most Auto Insurance policies will help you pay for your own medical costs and the injuries of other parties.
  • Legal expenses. If you injure someone else in a traffic accident, the injured party could sue your business. Auto Insurance helps you pay for things like legal defense, court-fees, judgments, and settlements.
  • Theft and vandalism. Sometimes Auto Insurance will cover accidents that aren't necessarily related to driving.

When one of the above happens to your business vehicle, your Commercial Auto Insurance or Hired & Non-Owned Auto Insurance will activate and help you pay for the expenses up to your policy's stated limits.

If you'd like to give a boost to your Auto policy, you can add Umbrella Insurance coverage to your protection plan. This coverage works by providing additional protection if and when you reach the limits on some of your existing liability policies, including your Auto Insurance.

Since protection can vary from provider to provider, make sure you check with your insurance agent to see what specific benefits are included in your Auto Insurance policy.

Get Free Quotes on Commercial Auto Insurance or Hired & Non-Owned Auto Insurance

Get Free Quotes on Commercial Auto Insurance or Hired & Non-Owned Auto Insurance

If you're ready to get a Commercial Auto or Hired & Non-Owned Auto Insurance quote for your computer, web, or IT business, then contact an insureon agent today. Or fill out our electronic application to receive your insurance quotes via email.

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