For many Tennessee business owners, the lines between personal and professional vehicle use often blur. Whether you are a consultant in Hixson driving your own car to a client meeting or a retail manager in Knoxville renting a van for a special delivery, your business is exposed to significant risk every time a vehicle not owned by the company is used for work. Hired and non-owned auto insurance (HNOA) provides the critical liability protection you need for these specific scenarios.
At WIN Insurance, we find that employee vehicle liability is one of the most frequently overlooked gaps in a commercial insurance plan. As an independent agency, we help you identify where your standard business auto policy stops and where HNOA needs to begin. We provide the expert, local guidance to ensure that a fender bender by an employee running a company errand doesn’t turn into a catastrophic lawsuit against your business.
Our goal is to keep your business moving forward safely. We shop through multiple top-rated carriers to find HNOA insurance in Tennessee that integrates seamlessly with your general liability insurance or Business Owners Policy (BOP). Let us help you secure your operations so you can focus on your team’s success, knowing you’re protected on every mile of the journey.
What HNOA Insurance Covers
Hired and non-owned auto insurance is a specialized liability coverage. It is divided into two distinct parts: “Hired” and “Non-Owned.” It is important to note that this coverage is typically liability only; it pays for the damage your business causes to others (third-party bodily injury and property damage) but does not usually cover the physical repair costs of the hired or non-owned vehicle itself.
- Hired Auto:Â This applies to vehicles your business leases, hires, rents, or borrows. If you rent a car for a business trip or lease a truck for a short-term project, this coverage protects the business if that vehicle is involved in an at-fault accident.
- Non-Owned Auto:Â This covers vehicles that are not owned, leased, or rented by the business but are used for business purposes. The most common example is an employee using their personal car to pick up supplies, visit a client, or drop off the mail.
When Businesses Need This Coverage
If your business operations involve any driving that doesn’t occur in a company-titled vehicle, you likely need hired and non-owned auto insurance. Under the legal principle of “respondeat superior” (vicarious liability), Tennessee employers can be held legally responsible for accidents caused by employees acting within the scope of their employment.
Your business needs HNOA if you ever:
- Send employees on errands (bank runs, post office, office supplies).
- Have a sales team that uses their personal vehicles for client visits.
- Rent vehicles for business travel or temporary projects.
- Do not own any company vehicles but still have employees driving for work.
- Use rideshare services (like Uber or Lyft) for business transportation.
2025 Legal Insight: Tennessee’s comparative negligence laws mean that even if your employee is only partially at fault, your business could still face a significant settlement. HNOA provides the legal defense team and settlement funds to manage these claims.
Common Gaps in Commercial Auto Policies
Many business owners mistakenly believe their standard commercial auto insurance or the employee’s personal policy is enough. However, standard commercial policies often only cover “Symbol 1” (Any Auto) or specifically “Owned Autos.” If your policy doesn’t explicitly include Symbols 8 and 9, you have no coverage for hired or non-owned vehicles.
Furthermore, an employee’s personal auto policy is designed for personal use. If they are involved in a major accident while “on the clock,” their personal insurer may deny the claim or only pay up to their personal limits—which are often much lower than what a business needs. HNOA acts as excess coverage, kicking in after the employee’s personal limits are exhausted to shield your business assets from the remaining balance.
| Scenario | Does Personal Auto Cover It? | Does HNOA Cover It? |
|---|---|---|
| Employee commute to the office | Yes | No (Not work scope) |
| Employee driving to a client site | Maybe (Likely limited) | Yes (Excess Liability) |
| Business owner renting a car for a conference | No (Business use exclusion) | Yes (Hired Auto) |
| Physical damage to the employee’s car | Yes (If they have Collision) | No (Liability Only) |
Get an HNOA Insurance Quote
Don’t wait for a “simple errand” to become a major financial burden. At WIN Insurance, we make it easy to add hired and non-owned auto insurance to your existing commercial insurance plan. We work with Tennessee business owners to evaluate their driving risks and set liability limits that provide real peace of mind.
Whether you have a fleet of fifty or a team of two in Hixson or Knoxville, our local agents are here to provide the expert service you deserve. We compare rates and coverage options to ensure your employee vehicle liability is managed professionally and affordably.
Call (423) 842-7811 today to get a free insurance quote. Speak with a local agent today and get the coverage you need.
