There are several ways to provide primary auto liability coverage for non-owned vehicles, depending on the needs of your business. These coverages are sometimes referred to as hired auto insurance and non-owned auto insurance. Navigator offers both hired auto insurance and non-owned auto insurance.

Certain non-owned vehicles are covered by the commercial auto policy. For instance, if your vehicle is out of service due to a breakdown, then a temporary substitute vehicle is automatically covered in most circumstances. You also can purchase a collection of separate insurance coverages, including employers' non-ownership insurance and hired auto insurance.

Employers' non-ownership insurance provides liability protection when an employee occasionally has to drive his or her personally owned vehicle for business purposes. This assumes that the vehicle is not owned, registered or contracted in your name or on your behalf.

Hired auto insurance provides liability protection when you are driving a vehicle that you, or your business, do not own or that is not registered to you. If you rent a vehicle for a less than 30 days, hired auto insurance will protect the rented vehicle.

If you ever drive vehicles that you do not own for your business, then you should choose one of the non-owned auto insurance coverages.

• Employers' non-ownership insurance protects your business when employees drive their own vehicles for a business purpose.
• Hired auto insurance protects you in other situations when you drive a vehicle you don't own.
  

Both hired and non-owned auto coverages use limits to describe the maximum amount your insurance company will pay. These limits are automatically the same limits as those you selected for your primary auto liability.

Non-Owned Vehicle Liability Example
You're at a work site when you realize you're running short on hex bolts. You send your employee, Joe, to the hardware store to pick up some extras to help get the job done. He drives his own vehicle.

On his way to the store, Joe rear ends the car in front of him.

The driver of the other car sprained his wrist.

Since Joe was driving for work, Joe's personal auto insurance can refuse to pay the bill. Fortunately, you selected non-owned auto insurance with a $1,000,000 combined single limit.

Your non-owned auto insurance would pay the following:

• $1,500 medical bill for the other driver's wrist X-ray

Since your total expenses are well below your $1,000,000 combined single limit, the above expenses would be completely covered by your insurance.