Commercial Auto or Hired & Non-Owned Auto Insurance
for Insurance Agents and Agencies
As an insurance agent, you may already understand the value in carrying a Commercial Auto or Hired & Non-Owned Auto Insurance policy — even if your business does not own the titles to company cars. But we'll review the benefits.
Let's start with the numbers. According to a recent National Highway Traffic Administration (NHTA) report, in 2012…
- About 2.4 million people were injured in traffic crashes
- About 33,561 people died in traffic crashes.
And those numbers don't include all of the non-traffic collisions that can result in injuries or death. The point is, traffic accidents are common. And no matter how careful you are, you simply cannot control the actions of others: pedestrians, bicyclists, and distracted drivers, to name a few.
The NHTA estimates that traffic crashes cost employers $128,178 per injury. Does your insurance agency have that kind of cash on hand? How about twice or triple that, in the event of multi-injury accidents?
If the answer is "no," then it's likely that a Commercial Auto Insurance or Hired & Non-Owned Auto Insurance policy can benefit your insurance agency. Read on to find out more.
How Far Can Your Personal Auto Policy Stretch?
Insurance Agents: How Far Can Your Personal Auto Policy Stretch?
If you drive a company-owned vehicle, then the benefits of Commercial Auto Insurance are obvious. But many insurance agents use their personal vehicles for work. How much car insurance does an insurance agent really need?
Motor vehicle accidents are the leading cause of "fatal unintentional injuries in the United States," according to the CDC's National Center for Health Statistics. In fact, based on 2009 numbers, someone dies in a motor vehicle accident once every 15 minutes and someone gets injured once every nine seconds.
In its 2011 Injury Factbook, the National Safety Council calculated that the cost of "motor vehicle crashes that involved people in the course of their work" totaled $20.5 billion, which consisted of:
- $3.7 billion in wage and productivity losses.
- $2.1 billion in medical expenses.
- $12.3 billion in administrative expenses.
- $2.0 billion in vehicle damage.
- $0.4 billion in employers' uninsured costs.
The kicker of all this is that your Personal Auto Insurance policy likely excludes these work-related exposures. They would, however, be covered by Commercial Auto and Hired & Non-Owned Auto Insurance policies.
Personal Auto vs. Commercial Auto
Personal Auto vs. Commercial Auto Insurance for Insurance Agents
Commercial Auto Insurance protects company-owned cars in much the same way that your Personal Auto Insurance policy protects your personal car. But that's not all it can do. Commercial Auto Insurance can also protect:
- The personal vehicle you use for work. It's important to realize that once you start using your personal vehicle for work driving, your Personal Auto Insurance policy is likely to be ineffective. That's because most Personal policies exclude coverage for accidents that happen while working. Commercial Auto Insurance can help you fill that exposure.
- Your employees as they drive your vehicles. Your Commercial Auto Insurance can protect other people who drive your owned vehicles for work, including employees.
As you can see, Commercial Auto Insurance can play an important role in your small business insurance plan, even if you don't own business-exclusive cars.
Personal Auto vs. Hired & Non-Owned Auto
Personal Auto vs. Hired & Non-Owned Auto Insurance for Insurance Agents
Almost every insurance agent has exposures that can be addressed with a Hired & Non-Owned Auto Insurance policy — even if you already carry Commercial Auto Insurance. As the name suggests, this type of coverage is designed to vehicles the business does not own and the people driving those vehicles.
This can take several forms, including the following:
- Rental vehicles. Every once in a while, you might need to rent a car for a business trip or while your personal vehicle is in the shop.
- Employees driving their vehicles on your behalf. If you ask employees to drive for work and you don't carry a Hired & Non-Owned Auto policy, you are putting yourself and your employee at great risk. That's because their Personal policy likely doesn't cover work-related accidents, and if they get injured, they could sue your business for damages.
- Car shares. Car sharing services are becoming more and more popular. Hired & Non-Owned Auto Insurance can help supplement the Car Insurance these services offer as part of their package.
Hired & Non-Owned Auto Insurance is one of those policies you carry for worst-case-scenarios. For example, if, while driving a car from a car-sharing service, you accidently hit another car and injure three people, your Hired & Non-Owned Insurance can help you cover what the car-share doesn't.
Hired & Non-Owned Auto Insurance tends to be affordable. You can usually get it as…
Read on to learn more about how a Commercial Auto or Hired and Non-Owned Auto Insurance policy can protect your insurance agency.
Commercial Auto and Hired & Non-Owned Auto
Commercial Auto and Hired & Non-Owned Auto Insurance: Protecting Insurance Agents
Insurance agents, more than most, understand risk and the cost of negative outcomes. Both Commercial Auto and Hired and Non-Owned Auto Insurance are designed to protect business owners from the potentially high costs associated with traffic accidents.
When you are found liable for an auto incident, your Auto Insurance coverage offers two primary benefits:
- Property damage. This is vehicle damage — both yours and that of other involved parties.
- Bodily Injury. This portion helps you pay for the medical expenses associated with a traffic incident.
- Legal Expenses. Some Auto Insurance policies may help you pay for legal counsel in the event that someone sued your business after a traffic accident. It may also help you pay for judgments and settlements, if you're found liable for wrongdoing.
If you should be found liable for a traffic accident, your auto policy will help you pay the damages up to the policy's stated limits. You can also pad the limits of your Auto Insurance policies by adding Umbrella Insurance to your small business insurance plan
Get Auto Quotes
Insurance Agents: Get Commercial Auto Insurance or Hired & Non-Owned Auto Insurance Quotes
When you're ready to get Commercial Auto or Hired & Non-Owned Auto Insurance for your insurance agency, contact an insureon agent. You may also fill out an electronic application to have quotes sent to your inbox.