Insurance companies consider the business driver as a greater risk than private drivers. For this reason, you could require automobile insurance, especially to cover operating business vehicles.

Auto insurance for individuals is mandatory in nearly every state. However, suppose you or your employees are involved in an accident while driving your vehicle to work. In that case, your insurance will not be able to pay for the damages. For this reason, many states demand that small business owners who drive corporate cars insure them with commercial auto insurance.

What Makes Business Drivers Greater Risk Than the Personal Driver?

Insurance companies consider business drivers riskier since they’re frequently on the road than other drivers. Consultants who drive to multiple clients’ offices weekly are more susceptible to accidents than those who only go to and from work daily.

Suppose you drive a personal car for business purposes such as deliveries, business errands, or client-related gatherings. If you or your employees use company-owned vehicles, you probably require insurance for commercial vehicles. In that case, you may need the insurance of a hired and non-owned auto. (HNOA)

The insurance companies look at a range of aspects when assessing the risk of a driver:

  • Mileage
  • Who is the owner of the vehicle
  • Record of driving
  • Geographic place
  • Age
  • Size of the vehicle
  • Profession

These elements determine if your insurance provider will be able to cover you or not and how much the costs will be.

Commercial Auto Insurance in Comparison to Non-Owned and Hired Auto Insurance

Your insurance company covers you if you only use your car for business-related activities. They could be able to tailor your policy to meet your requirements. If you travel to work regularly, consider including commercial auto insurance or non-owned and hired auto insurance.

The Distinction Between Personal Auto, Commercial Auto, and Hired and Non-Owned Auto Insurance

Depending on who owns the automobile and the type of car utilized, your organization may require insurance.

Personal Liability Auto Insurance is mandatory in practically every state. In the event of an accident, while operating your vehicle, it pays for repairs to other people’s property, including their cars and other vehicles. It also covers medical expenses for injuries sustained by third parties.

Get into an accident while driving a vehicle while performing work-related tasks, such as making deliveries or transporting equipment to a project site. Your auto insurance won’t shield you from injuries or legal action.

Commercial Auto Insurance safeguards your company from the cost of accidents that occur in company vehicles. It applies to all your staff members authorized to use corporate cars. The law often stipulates it in the state of origin, similar to personal auto insurance. It is either auto liability insurance or combined with comprehensive or collision insurance.

Most states require the purchase of commercial automobile insurance companies with vehicles registered to the company and employees who drive to work sites. Companies transporting equipment for work, employees, or customers through company vehicles could require commercial auto insurance.

Hired and Non-Owned Auto Insurance protects you from the costs of a lawsuit arising from an accident you or an employee caused when driving an individual, rented, or leased vehicle for business. HNOA is for employees who drive their cars to complete business-related errands or hire vehicles to travel for business.

Your firm could lose thousands of dollars from a single accident when using a personal or rented vehicle while driving for work. HNOA is a lot better than getting extra insurance for the corporate car.

Cleaning and construction companies are only some that might require HNOA coverage. However, any company that regularly or sometimes uses personal vehicles to work should consider HNOA coverage.

What Is the Operation of Hired and Non-Owned Auto Coverage?

You or employees use your vehicles for one of the following reasons. Things to consider in the following HNOA policy:

  • Business errands to run
  • Visiting client locations
  • Making deliveries
  • Getting items
  • Moving people or goods in exchange in exchange for a charge
  • Transporting equipment and tools for work

HNOA will cover the following expenses when you or your employee are involved in an accident while driving the personal, rented, or leased car for purposes of business:

  • Accidental damage to another vehicle
  • Property damage from third parties, such as a fence
  • Injuries to other people who were involved in the incident

Usually, HNOA will supplement any coverage provided by your personal auto insurance policy. For instance, if you visit a customer and you’re at fault for the result of an incident, then your auto insurance could cover your vehicle’s repair costs.

HNOA doesn’t cover damage to your property, only third-party responsibility costs. Suppose a third party sues you for damaging vehicles or property or causing injury to someone else or others. In that case, your HNOA policy will cover legal fees and settlements or judgments.

How May the Risk of an Accident Be Reduced When Driving to Work?

With the proper insurance, you should not need an insurance claim at all. As an owner of a business, it is your responsibility to establish an environment that is safe for your employees. Making an effort to make your workplace safer for your employees will guarantee that you, your family, and your business are all in the best possible shape.

Here are some of the best techniques for ensuring safety in the vehicle:

  • Create a policy for your company that defines the definition of “safe driving” is. Include possible sanctions and rewards actions.
  • Be aware that car accidents can be expensive but often avoidable.
  • Make the “no contact” rule that allows employees to not make text messages and phone calls while driving. Even rings that are hands-free can distract drivers’ attention.
  • Ensure to check employees’ driver permission to go to work.
  • Give safety tips, for example, workshops, training courses, and road safety.
  • Before leasing or purchasing a car for your business, you should look into its safety record.

Commercial Insurance Ottawa can help you get the best general commercial insurance for your vehicle, office space, structure, contractual duties, or service offerings. Contact us at (613) 454-5640 or via email at