Hired Or Borrowed Auto
Written by Justin Goodman, CIC, CISC, CLCS, CEO and Co-Founder, Total CSR
Published: September 17, 2026 · Last reviewed: September 17, 2026
In plain language: Hired or borrowed auto coverage protects a business when an employee drives a rental car, a leased truck, or someone else's vehicle for work and causes an accident. The business's own commercial auto policy typically will not respond without this specific coverage added.
Technical definition: Hired or borrowed auto coverage extends liability protection under the Business Auto Coverage Form to vehicles designated by liability Symbol 8 (hired) and Symbol 9 (non-owned), covering autos leased, hired, rented, or borrowed by the insured but not scheduled as owned vehicles on the policy.
Hired Or Borrowed Auto at a Glance
| Attribute | Detail |
|---|---|
| Also known as | Hired and Non-Owned Auto Liability (HNOA) |
| Category | Commercial auto liability endorsement |
| Lines of business | Commercial Auto, Business Owners Policy |
| Industries most affected | Construction, real estate, nonprofits, delivery services, professional services with employee travel |
| Related forms or endorsements | CA 20 01 (Primary Non-Contributory), CA 99 10, CA 99 44 |
| Who bears the risk | The business hiring, renting, or permitting employee use of a non-owned vehicle |
| Common solution | Adding liability Symbols 8 and 9 to the Business Auto Coverage Form |
| Also interacts with | Personal auto policies, general liability, employer's non-ownership liability |
Key Takeaways
- Hired or borrowed auto coverage insures liability for vehicles a business rents, leases, or borrows but does not title in the company's name.
- Agencies see this gap constantly when clients rent trucks for moves, use ride-share for client meetings, or borrow trailers, and none of it is covered without the right symbols on the policy.
- The most common misunderstanding is assuming a personal auto policy or general liability policy will cover an employee driving a rented car for business purposes; it usually will not.
- A quick win for agencies is auditing every commercial auto account annually for Symbol 8 and Symbol 9 coverage, especially when a client mentions renting equipment or vehicles seasonally.
What Is Hired Or Borrowed Auto in Insurance?
Hired or borrowed auto coverage is the mechanism that fills a specific gap left by standard commercial auto policies: liability for vehicles the business does not own. Most Business Auto Coverage Forms are written using numeric symbols that define which vehicles trigger coverage. Symbol 1 covers any auto. Symbols 8 and 9 specifically address hired autos (rented or leased) and non-owned autos (employee or volunteer vehicles used for company business). Without these symbols selected, a claim involving a rented moving truck or a borrowed delivery van has no home on the commercial policy.
The provision exists because ownership determines default coverage triggers in most auto forms, and carriers price commercial auto risk around vehicles they can inspect, schedule, and rate. A rented box truck or a volunteer's personal SUV was never underwritten that way, so the carrier requires an affirmative symbol selection to accept that exposure. This protects the insurer from silently absorbing risk on vehicles it never evaluated.
Consider a landscaping company that rents a stump grinder trailer and tow vehicle for a large job. An employee backs the rented truck into a parked car in a client's driveway. If the company's Business Auto policy only carries Symbol 1 for owned autos and lacks Symbol 8, the rental company's insurance and the employee's personal policy become the only lines of defense, often leaving the business exposed to a direct claim for negligent supervision or vicarious liability.
How Does Hired Or Borrowed Auto Work?
- The rental or borrow. An employee rents a vehicle for business travel, or the company borrows equipment requiring a tow vehicle, or a volunteer uses a personal car for a company errand.
- The accident. The employee or volunteer causes a collision while operating that non-owned vehicle in the course of business activity.
- The claim. The injured party or their insurer files a claim naming the business, since the vehicle was being used for company purposes at the time.
- The coverage check. The agency or carrier reviews the Business Auto Coverage Form declarations to confirm whether Symbol 8 or Symbol 9 was selected for the policy period.
- The response. If the symbols are present, the carrier defends and indemnifies the business up to policy limits; if absent, the business faces the loss with only excess or umbrella coverage, if any, standing behind it.
Real Claim Examples Involving Hired Or Borrowed Auto
Rental truck accident during an office relocation
A small accounting firm rented a box truck to move office furniture between locations during a lease transition. An employee driving the rental truck sideswiped a parked vehicle in a shopping center lot. The firm's commercial auto policy included Symbol 8, so the hired auto liability coverage responded, paying for the third-party vehicle damage and legal costs, with the rental company's own coverage acting as excess.
Volunteer driver injures a pedestrian
A nonprofit relied on a volunteer's personal car to transport donated goods between drop-off sites. The volunteer struck a pedestrian while making a delivery run. Because the nonprofit's policy carried Symbol 9 for non-owned autos, the organization's coverage responded to the third-party injury claim after the volunteer's personal auto limits were exhausted, protecting the nonprofit from a direct lawsuit for negligent entrustment.
Contractor borrows a subcontractor's flatbed
A general contractor borrowed a subcontractor's flatbed trailer to move materials between job sites, using the contractor's own pickup truck as the tow vehicle. The trailer detached and struck another vehicle on the highway. Because the trailer itself was towed by an owned vehicle already covered under Symbol 1, the claim was covered without needing hired or non-owned symbols, illustrating how the ownership of the towing vehicle, not just the trailer, often determines which part of the policy applies.
Hired Or Borrowed Auto vs. Non-Owned Auto Liability: What Is the Difference?
Hired or borrowed auto coverage and non-owned auto liability are frequently used interchangeably, but they address distinct exposures within the same Business Auto Coverage Form. Hired auto coverage (Symbol 8) applies to vehicles the business rents, leases, or borrows directly, while non-owned auto liability (Symbol 9) applies to vehicles owned by employees or others but used on company business.
| Comparison area | Hired Auto (Symbol 8) | Non-Owned Auto (Symbol 9) |
|---|---|---|
| Primary use case | Business rents or leases a vehicle | Employee uses personal vehicle for work |
| Coverage / concept type | Liability and often physical damage | Liability only, typically |
| Typical exclusions | Vehicles owned by the insured | Vehicles owned or regularly used by the insured |
| Who is most affected by errors | Businesses that rent equipment seasonally | Businesses reimbursing mileage without checking auto exposure |
| Common mistakes | Forgetting to add Symbol 8 before a rental period | Assuming employee personal auto insurance is primary |
What Are the Most Common Mistakes With Hired Or Borrowed Auto?
- Agencies assume general liability policies cover auto accidents; they almost always exclude auto liability entirely, leaving a business with no coverage if hired or non-owned symbols are missing from the auto policy.
- CSRs quote Business Auto policies with only Symbol 1 selected, missing that the client regularly rents trucks or trailers for seasonal work, creating an uninsured gap discovered only after a loss.
- Producers forget that hired auto physical damage is a separate coverage from hired auto liability, so a client may have liability protection but no coverage for damage to the rental vehicle itself.
- Agencies fail to confirm whether volunteer or employee mileage reimbursement triggers non-owned auto exposure, particularly for nonprofits and home health agencies that rely heavily on personal vehicles.
- Documentation gaps occur when a client's operations change, such as adding a delivery service, without a corresponding review of auto symbols on the policy.
How to Explain Hired Or Borrowed Auto to a Client
Explaining Hired Or Borrowed Auto to a personal lines client
Your personal auto policy generally follows you when you drive a rental car on vacation, but business use is different. If you ever run errands for your employer in your own car, ask your employer whether their business policy covers you, because your personal policy may deny a claim tied to work activity.
Explaining Hired Or Borrowed Auto to a small business owner
Your commercial auto policy covers the vehicles you own, but the moment your team rents a truck or borrows a trailer for a job, you need hired and non-owned auto coverage added. Without it, an accident in that rented vehicle could come straight back to your business with no insurance standing behind you.
Explaining Hired Or Borrowed Auto to a CFO or risk manager
Your Business Auto Coverage Form uses liability symbols to define exactly which vehicles are covered, and Symbols 8 and 9 are what extend protection to hired and non-owned vehicles. I recommend we review your fleet schedule alongside any mileage reimbursement or rental practices annually, since operational changes often outpace the policy's symbol selections.
Frequently Asked Questions About Hired Or Borrowed Auto
Does hired or borrowed auto coverage include physical damage to the rental vehicle?
Liability coverage under Symbol 8 protects against third-party bodily injury and property damage claims, but it does not automatically cover damage to the rental vehicle itself. Hired auto physical damage is a separate coverage option that must be added if the business wants protection against the rental company's damage claim.
Do employees need their own coverage if the business has non-owned auto liability?
Non-owned auto liability on the business policy typically applies excess over the employee's personal auto policy, meaning the employee's insurance responds first. The business coverage steps in when damages exceed the employee's personal limits or when the personal policy denies the claim due to business use exclusions.
Is hired or borrowed auto coverage automatic on a Business Auto Coverage Form?
Coverage is not automatic and depends entirely on which liability symbols the policy selects. A policy written only with Symbol 1 for owned autos provides no coverage for rented or borrowed vehicles unless Symbols 8 and 9 are specifically added.
Can a business rely on the rental company's insurance instead of adding hired auto coverage?
Rental companies typically offer optional damage waivers and limited liability protection, but relying solely on that coverage leaves gaps in limits and often excludes claims tied to business operations. Total CSR's training work with agencies consistently shows that clients who skip hired auto coverage to save premium end up with the largest uncovered claims when a rental accident involves injuries.
Does a nonprofit need non-owned auto coverage if volunteers use their own cars?
Nonprofits that depend on volunteer drivers face meaningful exposure under non-owned auto liability, since the organization can be named in a lawsuit even though it does not own the vehicle involved. Adding Symbol 9 protects the organization's assets when a volunteer's personal insurance proves insufficient.
What is the difference between hired auto and rented auto for personal use?
Hired auto coverage under a commercial policy only applies when the vehicle is rented for business purposes, not personal errands. A business owner renting a car for a family vacation would rely on personal auto or the rental company's coverage, not the commercial hired auto endorsement.
Related Insurance Terms
- Non-Owned Auto Liability: Coverage for vehicles owned by employees or others but used for business purposes, distinct from vehicles the business itself rents or leases.
- Symbol 8: The Business Auto Coverage Form liability symbol designating hired autos, meaning vehicles leased, hired, rented, or borrowed by the insured.
- Symbol 9: The Business Auto Coverage Form liability symbol designating non-owned autos, meaning vehicles used on the insured's behalf but not owned by the insured.
- Employer's Non-Ownership Liability: A related concept describing a business's exposure when employees use personal vehicles for company errands, often addressed through Symbol 9 coverage.
- Business Auto Coverage Form: The standard ISO form (CA 00 01) that establishes which vehicles are covered based on selected liability symbols, including hired and non-owned autos.
- Contingent Liability: The legal exposure a business faces for the actions of others, such as employees or volunteers, which hired or borrowed auto coverage helps address for vehicle-related claims.
- Umbrella Liability Policy: Excess coverage that can extend limits above a hired or non-owned auto liability policy once its limits are exhausted.
Sources and References
- Insurance Services Office (ISO). Business Auto Coverage Form (CA 00 01).
- International Risk Management Institute (IRMI). Hired and Non-Owned Auto Liability.
About the Author
Justin Goodman, CIC, CCIP, CISC, CLCS, CRIS, PCIA, QCLS, MFHR CEO and Co-Founder, Total CSR, Inc.
Justin Goodman is a third-generation insurance broker with over two decades in agency operations. He has trained more than 100,000 CSRs, account managers, and producers in commercial and personal lines coverage, from workers' compensation to construction risk. He was named 2024 Insurance Journal Agent of the Year and one of the nation's top five construction insurance experts by Risk & Insurance. He is the author of Retain, which applies cognitive science research on memory and knowledge transfer to insurance training, and speaks nationally on how agencies build durable technical expertise in their teams.