Hired and Non-Owned Auto
Published: October 21, 2026 · Last reviewed: October 21, 2026 · Est. reading time 9 minutes
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In plain language: Hired and non-owned auto protects a business when someone drives a car the business does not own for work, like a rental car on a trip or an employee's own car on a bank run, and causes an accident. The coverage pays for injuries and damage to other people, not for damage to the car being driven.
Technical definition: Hired and non-owned auto (HNOA) is auto liability for autos a business leases, hires, rents or borrows (Symbol 8) and autos it does not own but uses in its business, such as employee cars (Symbol 9). Insurers write it on the business auto form or add it to a businessowners or general liability policy by endorsement.
Hired and Non-Owned Auto at a Glance
The table below shows how hired and non-owned auto fits into a commercial insurance program.
| Attribute | Detail |
|---|---|
| Also known as | HNOA, hired and non owned auto coverage, Symbols 8 and 9 |
| Category | Commercial auto liability |
| Lines of business | Commercial auto, businessowners, general liability |
| Industries most affected | Professional services, retail, contractors, nonprofits, healthcare |
| Related forms or endorsements | ISO CA 00 01 (Symbol 8, Symbol 9), ISO BP 04 04 |
| Who bears the risk | The business whose operations put the vehicle on the road |
| Common solution | Endorsement on the businessowners policy, or Symbol 8 and Symbol 9 on the commercial auto policy |
| Also interacts with | Personal auto, general liability auto exclusion, workers compensation |
Key Takeaways
- Hired and non-owned auto is liability protection for a business when rented vehicles, borrowed vehicles or employee-owned vehicles are used on company business.
- Agencies need this coverage on nearly every commercial account, because almost every business has staff who make bank runs or pick up office supplies in their own cars.
- The most common misunderstanding is that the coverage pays for damage to the rented or employee's car, but it covers liability to others only.
- A quick win is asking every commercial client, at every renewal, whether anyone uses personal vehicles for work or rents cars on trips.
What Is Hired and Non-Owned Auto in Insurance?
Hired and non-owned auto is a form of business auto liability that follows the business, not a specific vehicle. Many business owners learn too late that commercial general liability policies exclude most auto exposures. A business without company cars often has no auto protection at all. Injured people usually sue the employer as well as the driver, so hired and non-owned auto coverage closes real auto liability gaps.
Two parts make up the coverage. Hired autos are vehicles the business leases, hires, rents or borrows, such as rental vehicles on a sales trip. Non-owned autos are vehicles the business does not own or hire that are used in its business, including cars owned by employees. On the ISO business auto form, Symbol 8 describes hired autos and Symbol 9 describes non-owned autos.
Consider a bookkeeping firm with no vehicles of its own. An employee drives her own sedan to make a business deposit and rear-ends a delivery van. Her personal auto policy pays first. The injured driver's claim exceeds her limits and also names the firm, so the firm's hired and non-owned protection responds.
How Does Hired and Non-Owned Auto Work?
- The trip. An employee rents a car for a conference or drives a personal car for business errands, customer visits or sales calls.
- The accident. The driver injures a third party or damages someone else's property while on company business.
- The claim. The injured party sues the driver and the employer, arguing the employer answers for work-related driving.
- The response. For a non-owned auto, the employee's own policy normally provides primary coverage, and the business protection sits in excess. For a rented car, the business policy is often primary, depending on the rental contract and policy wording.
- The outcome. The insurer pays covered damages, legal fees and other liability expenses up to the policy limits, shielding the business from a financial liability it never expected.
Claim Examples Involving Hired and Non-Owned Auto
Hired auto liability claim after a rental car crash
A consulting firm sent two staff members to a client site in rented vehicles. One driver ran a red light and seriously injured a pedestrian. The firm owned no vehicles and assumed it had no auto exposure. Its businessowners policy carried an endorsement for hired and non-owned autos, so the carrier defended the firm and paid the claim within the limit.
Employee supply run without HNOA coverage
A dental office asked a receptionist to pick up supplies in her own car. She caused a three-car accident, and the injured drivers sued the practice after her personal limits ran out. The office had general liability insurance but no auto protection for non-owned vehicles. The auto exclusion applied, and the practice paid its defense and settlement out of pocket.
Volunteer driver for a nonprofit
A food bank relied on volunteers using their own cars for delivery operations. A volunteer struck a cyclist while delivering meals. The food bank's business auto declarations listed Symbol 8 and Symbol 9. Non-owned auto coverage responded once the volunteer's own policy was exhausted.
| Comparison area | Hired and Non-Owned Auto | Owned-Vehicle Business Auto |
|---|---|---|
| Primary use case | Rented, borrowed and employee cars | Company-owned vehicles such as trucks and vans |
| Coverage / concept type | Liability only | Liability plus optional physical damage |
| Typical exclusions | Damage to the vehicle being driven, the employee's personal liability | Autos outside the listed symbols |
| Who is most affected by errors | Office-based firms with no fleet | Fleet operators and contractors |
| Common mistakes | Assuming the employee's policy is enough | Leaving Symbol 8 and Symbol 9 off the declarations |
What Are the Most Common Mistakes With Hired and Non-Owned Auto?
- Assuming no fleet means no auto exposure. Any employee who drives for work creates non-owned exposure, and an uncovered claim lands on the business.
- Expecting first-party protection. The coverage does not include collision coverage on the borrowed or rented car, and it usually does not provide underinsured motorist coverage or medical payments coverage for the driver.
- Thinking the coverage protects the employee. Standard non-owned liability protects the business, not the employee driver, who relies on a personal policy.
- Ignoring reimbursed mileage. Employers that pay employees by the mile have regular business driving, which is a strong signal to quote the coverage.
- Leaving symbols off the declarations. A business auto form without Symbol 8 and Symbol 9, or Symbol 1, can leave hired and non-owned exposures uncovered, creating E&O exposure for the agency.
- Skipping hired physical damage. Businesses that rent often may need physical damage coverage for hired autos, or the rental company's damage waiver, to avoid paying for the car.
How to Explain Hired and Non-Owned Auto to a Client
Explaining Hired and Non-Owned Auto to a personal lines client
Your own auto insurance policy covers you when you drive your car, including for work. If you cause a serious accident on work errands, the injured person may also sue your employer. Your employer's protection covers the business, not you, so keep your own limits high.
Explaining Hired and Non-Owned Auto to a small business owner
Every time an employee drives a personal or rented car for business purposes, your company can be sued for that accident. Your general liability policy will not cover it. Small business insurance packages often offer this endorsement at a modest price compared with one uninsured lawsuit.
Explaining Hired and Non-Owned Auto to a CFO or risk manager
Non-owned auto exposure grows with headcount, travel and reimbursed driving, even with no fleet. The insurance coverage transfers vicarious auto liability that general liability excludes. Good risk management aligns the limit with your umbrella's underlying requirements and checks how rental agreements handle physical damage.
Frequently Asked Questions About Hired and Non-Owned Auto
Does HNOA insurance cover damage to the rental car?
No. Hired and non-owned auto insurance pays for injury and damage to others. Damage to the rental car itself needs physical damage coverage for hired autos, a rental company waiver, or another source.
Do I need an HNOA policy if my employees use their own cars only occasionally?
Yes, in most cases. A single errand can lead to a lawsuit against the business. Even occasional business use creates the exposure, and the premium usually reflects how often employees drive.
Is non-owned auto coverage primary over the employee's own policy?
Usually, no. For a car the employee owns, the employee's policy typically pays first and the business coverage responds in excess. Policy wording and state law can change that order.
Can a sole proprietor get hired auto coverage?
Yes. A sole proprietor can buy it, but non-owned protection covers the business, not the owner personally. Owners who drive autos they do not own may also need a drive other car endorsement.
How much does HNOA insurance cost?
Price depends on the carrier, the number of employees, how often staff drive for work, rental use and the limit selected. Ask the carrier for a quote rather than relying on a rule of thumb.
Does hired and non-owned auto meet contract insurance requirements?
Often, yes. Many service contracts ask for auto liability coverage on hired and non-owned autos, sometimes with additional insured status. Check the contract's legal requirements against the actual endorsement before issuing a certificate.
Sources and References
- Independent Agent Magazine. Symbols 1, 8 and 9 and Non-Owned and Hired Auto Coverage.
- Big I Virtual University. Does a Sole Proprietor Need Symbols 8 & 9 and Drive Other Car Coverage.