The Errand That Cost a Million Dollars: Why Your Business Needs Hired & Non-Owned Auto Coverage

If you run a small business in Ohio, you probably have a “go-to” person for the little things—the employee who runs to the post office, picks up lunch for the crew, or grabs a specific part from a supplier in Findlay.

They use their own car. They have their own insurance. So, you aren’t at risk, right?

Wrong. If that employee causes a serious accident while on “company time,” the victim’s attorney won’t just look at the employee’s $50,000 insurance policy. They will look at your business. This is where a massive gap exists in many standard commercial policies, and the solution is a critical endorsement called Hired and Non-Owned Auto (HNOA) coverage.

The “Shadow Risk” of Personal Vehicles

Most business owners understand why they need Commercial Auto Insurance for a truck they own. But “Non-Owned” risk is a shadow risk—it’s invisible until an accident occurs.

Under the legal doctrine of respondeat superior, an employer can be held liable for the actions of an employee performed within the course of their employment.

• The Scenario: Your office manager is driving to the bank to drop off a deposit. They get distracted by a phone notification and strike a pedestrian.
• The Fallout: The employee’s personal insurance pays out first, but it is quickly exhausted by medical bills. Because the employee was on a business errand, your business is now legally responsible for the remaining balance.

What Does Hired and Non-Owned Auto (HNOA) Cover?

HNOA provides liability protection for your business when vehicles you don’t own are used for company business.

• Non-Owned Auto: Covers vehicles owned by your employees while they are being used for business errands.
• Hired Auto: Covers vehicles you or your employees rent or lease for business purposes (like a rental car for a business trip to Columbus or a U-Haul for a one-day equipment move).

Why the Employee’s Personal Policy Isn’t Enough

A common pushback we hear is, “But my employees have insurance.” While that may be true, personal auto policies almost always have a Business Use Exclusion. If their carrier finds out they were on a formal business errand, they may deny the claim entirely. Furthermore, even if they do pay, personal limits (like $100,000/$300,000) are rarely enough to cover a multi-million dollar corporate lawsuit.

Is This Only for Large Companies?

Actually, small businesses are at higher risk. Larger companies often have fleet vehicles, but small businesses—like local contractors, small medical clinics, or retail shops—rely heavily on the “quick errand” performed by a staff member in a personal vehicle.

How to Close the Gap in 2026

The good news is that Hired and Non-Owned Auto coverage is one of the most affordable endorsements you can add to your General Liability or Commercial Auto policy. For a few hundred dollars a year, you can protect your business’s entire net worth from a single distracted moment in a personal car.

Action Steps for Ohio Business Owners

1. Audit Your Errands: Who in your office is driving for work? Do they have a valid license and up-to-date personal insurance?
2. Create a Policy: Explicitly state that employees should not use personal vehicles for work unless they have been cleared and the business has HNOA coverage.
3. Check Your Dec Page: Look for “Symbol 8” and “Symbol 9” on your commercial auto policy. These represent Hired and Non-Owned coverage. Symbol “1” is also a solid solution small business owners should consider carrying on their auto policy, that covers “Any Auto”.

Protect Your Business with Hitchings Insurance

At Hitchings Insurance, we pride ourselves on finding the “silent killers” in your insurance program. We work with small and mid-sized businesses across Northwest Ohio to ensure that a simple errand doesn’t turn into a business-ending event.

Not sure if your “Non-Owned” risk is covered? Call our commercial experts at (419) 423-9145 or Request a Commercial Review online.