Hired and Non-Owned Auto Insurance for Home Care
Protect your home care business when employees use personal vehicles to drive between client homes. Essential coverage for agencies that don’t own vehicles but whose employees drive for work.
- Covers liability when employees use personal cars for business
- Protects you when renting vehicles for company use
- Required coverage if you don’t own vehicles but employees drive
What Is Hired and Non-Owned Auto Insurance for Home Care?
Hired and non-owned auto insurance for home care is a critical liability layer for agencies that do not own a fleet of company vehicles. This specialized non-owned auto liability protects your business when caregivers or staff members use their personal vehicles to travel between client homes or run agency errands. Without this coverage, your agency could be held liable for millions in damages if an employee is involved in an at-fault accident while on the clock.
For home care agencies, this coverage is essential if your caregivers drive their personal vehicles between client homes, transport supplies, attend meetings, or conduct any business-related driving. When your employee causes an accident while driving for work, you’re liable as the employer under vicarious liability laws. Their personal auto insurance likely won’t cover business use, leaving you completely exposed. Without hired and non-owned coverage, you’d pay all damages, legal fees, and settlements from your own funds. A single serious accident could cost $500,000+ and bankrupt your agency. While HNOA covers liability for personal vehicles, agencies that own company-titled cars should look into our full commercial auto insurance policies.
While not legally required by states, hired and non-owned auto insurance is mandatory under most managed care contracts, facility agreements, and client contracts when employees drive for business. Even without contractual requirements, you face significant liability exposure if employees use personal vehicles for work. Most agencies that don’t own vehicles need H&NO coverage. If you own even one vehicle, you need commercial auto insurance instead, which typically includes hired and non-owned coverage automatically.
Review the Insurance Information Institute (III) for more on hired and non-owned business liability.
Complete Hired & Non-Owned Auto Protection
Hired and non-owned auto insurance provides essential liability coverage when employees drive personal vehicles or you rent vehicles for business.
Covers your liability when employees use their personal vehicles for business purposes. Provides coverage when the employee’s personal auto insurance denies the claim due to business use or when damages exceed the employee’s personal policy limits.
Scenarios: Employee causes accident while driving to client home, caregiver at-fault in collision traveling between appointments, employee’s personal insurance denies claim due to business use, damages exceed employee’s personal insurance limits, employee causes multi-vehicle accident during work hours, or caregiver injures pedestrian while driving for work.
What’s Covered:
- Bodily injury to others
- Property damage to other vehicles
- Medical expenses for injured parties
- Legal defense costs
- Settlements and judgments
- Excess coverage over employee’s personal insurance
- Typically $1M combined single limit
Covers your liability when you rent or lease vehicles short-term for business purposes. Provides protection when using rental cars for client transportation, business meetings, or temporary vehicle needs when company vehicles are unavailable.
Scenarios: Renting van to transport clients to group outing, using rental car while company vehicle in shop, leasing temporary vehicle for special project, employee causes accident in rental car during business trip, renting wheelchair van for client transport, or short-term vehicle rental for training sessions.
What’s Covered:
- Liability for accidents in rental vehicles
- Coverage for short-term leases (typically under 6 months)
- Bodily injury and property damage
- Legal defense for rental vehicle accidents
- Excess coverage over rental company insurance
- Protects when rental insurance declined
- Typically same limits as non-owned coverage
Provides additional liability coverage above the employee’s personal auto insurance. Acts as backup when employee’s personal insurance pays first but doesn’t cover all damages. Particularly important when employees carry only state minimum insurance (often just $25,000 to $50,000).
Scenarios: Employee has $25,000 minimum insurance but causes $200,000 damage, serious accident exceeds employee’s $100,000 policy, multiple victims exceed per-person limits on personal policy, employee at-fault in accident with luxury vehicle, catastrophic injury exceeds employee’s coverage, or employee’s insurance company becomes insolvent.
What’s Covered:
- Amounts exceeding employee’s personal limits
- Additional protection above minimum insurance
- Drop-down coverage if employee uninsured
- Protection when personal insurance inadequate
- Fills gaps in employee coverage
- Provides employer liability protection
Provides legal defense when you’re sued over employee driving or rental vehicle accidents. Covers attorney fees, court costs, expert witnesses, and all legal expenses regardless of fault. Defense costs can easily exceed $50,000 even for denied claims.
Scenarios: Lawsuit claims you negligently allowed uninsured employee to drive, allegations of inadequate driver screening, claims of negligent supervision of drivers, lawsuit over employee’s accident during work, legal action from injured parties, or defense against multiple plaintiffs in one accident.
What’s Covered:
- Attorney fees and legal costs
- Court costs and filing fees
- Expert witness expenses
- Investigation costs
- Settlement negotiations
- Trial costs if needed
- Defense even if claim groundless
Why Hired & Non-Owned Auto Insurance Is Essential
Home care agencies that allow employees to drive personal vehicles face significant liability that requires specialized coverage.
Your Employees Drive Constantly For Work
Home care operations require caregivers to drive between multiple client homes daily, often 30 to 100+ miles per day. They drive their personal vehicles to appointments, transport supplies, attend training, and conduct business throughout the community. Every mile driven for business creates liability exposure. Unlike office workers who commute once daily, your employees are on the road constantly during work hours. More driving equals more accident risk, and eventually accidents will happen regardless of driver quality.
Employee Personal Auto Insurance Won’t Cover You
When employees use personal vehicles for business and cause accidents, their personal auto insurance typically denies coverage due to business use exclusions. The insurance company investigates and discovers the accident happened during work hours while driving for business, then denies the claim entirely. Even if the employee’s insurance does pay, it only covers the employee, not your business. As the employer, you’re separately liable under vicarious liability laws. Without hired and non-owned coverage, you have zero protection and must pay all damages, legal fees, and settlements from your own funds.
You’re Liable For Employee Driving Even Though It’s Their Car
Under the legal doctrine of vicarious liability (respondeat superior), employers are automatically liable for employee actions during work. If your employee causes an accident while driving for work, you’re jointly liable for all damages even though you don’t own the vehicle and the employee was at fault. Plaintiffs sue both the employee and your business. You cannot escape liability by claiming “it was their car, not mine” or “the employee was at fault.” As the employer, you’re responsible. Hired and non-owned insurance protects you from this automatic liability exposure.
Accidents Are Expensive and Could Bankrupt Your Agency
Auto accident costs are staggering. A serious accident with multiple injuries can easily exceed $500,000 to $1 million in total damages. Medical bills for severe injuries often reach $100,000+ per person. Add lost wages, pain and suffering, property damage, legal fees, and you’re facing catastrophic financial exposure. If your employee (who likely carries minimum insurance of $25,000 to $50,000) causes a $500,000 accident, you’re personally responsible for the difference. Without hired and non-owned coverage, one serious accident could force you to liquidate business assets, deplete savings, and potentially declare bankruptcy.
Coverage Is Inexpensive Compared To Risk
Despite providing substantial protection, hired and non-owned auto insurance is surprisingly affordable. Most home care agencies pay just $500 to $1,500 annually for $1 million in coverage. That’s less than $125 per month for protection against potentially catastrophic claims. The coverage often costs less than insuring a single vehicle with commercial auto insurance. Given the extensive driving your employees do and the liability exposure you face, hired and non-owned insurance is one of the most cost-effective coverages available. The premium is a small price for substantial protection.
Real Hired & Non-Owned Auto Claims in Home Care
Understanding actual claims helps illustrate why this coverage is essential. Here are real scenarios from home care agencies:
Employee Causes Multi-Vehicle Highway Accident
The Incident: A caregiver was driving her personal vehicle to a client home on a busy highway when she looked down at her phone to check the client’s address. She failed to notice stopped traffic and rear-ended the vehicle in front of her at 55 mph, causing a chain reaction involving four vehicles. Two people sustained serious injuries including fractured vertebrae and head trauma.
The Claim: $425,000 in total damages including medical expenses, lost wages, pain and suffering, and vehicle damage. The caregiver’s personal auto insurance had only $100,000 coverage. Her insurance paid $100,000, leaving $325,000 uncovered.
The Outcome: Hired and non-owned coverage paid the remaining $325,000. Legal defense costs exceeded $65,000. Total cost: $390,000. Without H&NO coverage, the agency would have been personally liable for $390,000, likely forcing closure. With coverage, the agency continued operating without financial disruption.
Employee Without Insurance Causes Accident
The Incident: A newly hired caregiver falsely claimed to have auto insurance on her employment application. Three weeks into employment, she caused an at-fault accident while driving to a client home, injuring two people in the other vehicle. Investigation revealed she had no personal auto insurance despite certifying she was insured.
The Claim: $275,000 claim for medical expenses, lost wages, and pain and suffering. No personal insurance to cover any portion.
The Outcome: Hired and non-owned coverage provided “drop-down” coverage since employee was uninsured. Policy paid the full $275,000 claim plus $45,000 in legal defense. Total: $320,000. Without H&NO coverage, agency would have paid $320,000 from business funds. Agency implemented insurance verification procedures and revised hiring practices.
Rental Van Accident During Client Transport
The Incident: An agency rented a 12-passenger van to transport clients to a group activity. The employee driver made an unsafe lane change and sideswiped another vehicle, then overcorrected and hit a third vehicle. One client in the van suffered injuries, along with occupants of both other vehicles.
The Claim: $180,000 in claims from the injured client ($85,000), and two other vehicle occupants ($55,000 and $40,000). Rental company’s insurance only covered $25,000.
The Outcome: Hired auto coverage paid $155,000 (total claim minus rental insurance). Legal defense added $35,000. Total coverage: $190,000. Without hired auto coverage, agency would have been liable for $190,000 out of pocket. The claim reinforced importance of driver training for rental vehicles.
Employee’s Minimum Insurance Inadequate
The Incident: A caregiver with only state minimum insurance ($25,000 per person / $50,000 per accident) caused an accident resulting in permanent disability to another driver. The injured party required extensive surgery, rehabilitation, and could never return to work.
The Claim: $650,000 claim for medical expenses, lost future earnings, pain and suffering, and permanent disability.
The Outcome: Employee’s personal insurance paid its $50,000 maximum. Hired and non-owned insurance paid $600,000 additional (within the policy’s $1M limit). Legal defense costs: $75,000. Without H&NO coverage, agency would have owed $675,000 personally. The coverage saved the business from bankruptcy.
Hired and Non-Owned Auto Insurance Claims by the Numbers:
- Average hired and non-owned claim: $75,000 to $250,000
- Percentage of caregivers with only minimum insurance: 30 to 40%
- Average state minimum auto insurance: $25,000 to $50,000
- Serious injury claims frequently exceed: $500,000
- Legal defense costs average: $50,000 to $100,000
- Annual cost of H&NO coverage: $500 to $1,500 for most agencies
Understanding Coverage Limits and Insurance Costs
Understanding H&NO Coverage Limits
Most hired and non-owned auto policies use a Combined Single Limit (CSL) structure rather than split limits.
Combined Single Limit: One amount that applies to entire accident (bodily injury and property damage combined).
Common CSL limits:
- $500,000 (minimum, not recommended)
- $1,000,000 (standard and recommended)
- $2,000,000 (better protection for larger agencies)
Example with $1M CSL: Accident with $600,000 medical bills, $200,000 lost wages, $100,000 property damage = $900,000 total. Coverage pays full $900,000 (within $1M limit).
How Coverage Works:
Primary Coverage: Employee’s personal auto insurance pays first up to its limits.
Excess Coverage: H&NO coverage pays amounts exceeding personal insurance or if personal insurance denies.
Example: Total damages: $400,000 Employee’s personal insurance: $50,000 Your H&NO pays: $350,000
Drop-Down Coverage: If employee has no insurance, H&NO “drops down” to provide primary coverage.
Recommended Limits:
Small agencies (under $1M revenue): $1M CSL minimum Medium agencies ($1M to $5M): $1M CSL standard Large agencies ($5M+): $1M to $2M CSL
Defense Costs: Most policies provide defense outside limits (defense costs don’t reduce coverage available for damages).
Key Features:
- Covers claims filed during the policy period
- Must maintain continuous coverage to stay protected
- Retroactive date determines coverage start
- Need tail coverage if you cancel or switch carriers
- Premiums often lower initially but increase as retroactive date extends
How Much Does H&NO Coverage Cost?
Hired and non-owned auto insurance is remarkably affordable compared to commercial auto coverage.
Pricing Factors:
Number of Employees: Primary factor. More employees who drive = higher premium.
- 1 to 10 employees: Base rates
- 11 to 25 employees: Moderate increase
- 26 to 50 employees: Higher rates
- 50+ employees: Highest rates
Annual Mileage: Total miles driven for business by all employees.
- Under 25,000 miles annually: Lower rates
- 25,000 to 100,000: Moderate rates
- 100,000+: Higher rates
Employee Driving Records: Sample of employee MVRs reviewed.
- Clean records: Better rates
- Multiple violations: Higher rates
- DUI or serious violations: May be declined
Type of Driving:
- Local driving only: Lower rates
- Regional (multi-county): Moderate rates
- Long-distance: Higher rates
Claims History: Prior claims significantly increase premiums.
Coverage Limits:
- $500K limit: Base premium
- $1M limit: 20 to 30% more than $500K
- $2M limit: 40 to 60% more than $500K
Typical Cost Ranges:
Very Small Agency (1 to 5 employees):
- $1M coverage
- Local driving
- Clean records Annual Premium: $500 to $900
Small Agency (6 to 15 employees):
- $1M coverage
- Moderate mileage
- Good driving records Annual Premium: $800 to $1,500
Medium Agency (16 to 40 employees):
- $1M coverage
- Higher mileage
- Mixed driving records Annual Premium: $1,200 to $2,500
Large Agency (40+ employees):
- $1M to $2M coverage
- Extensive driving
- Some claims history Annual Premium: $2,500 to $5,000
Cost Comparison:
H&NO for 20 employees: $1,500 annually ($75 per employee) Commercial auto for one vehicle: $3,000+ annually
H&NO is dramatically less expensive than commercial auto.
Requirements and Employee Obligations
Hired and non-owned coverage requires employees to maintain personal auto insurance and meet certain standards.
Employee Requirements:
Must Have Personal Auto Insurance:
- Valid auto insurance policy
- Minimum liability limits (typically $50,000 to $100,000)
- Proof of insurance provided to employer
- Continuous coverage maintained
- Named driver on policy
If Employee Uninsured:
- Some H&NO policies deny coverage
- Others provide drop-down coverage (more expensive)
- May void coverage if you knew employee uninsured
- Regular verification essential
Driver’s License Requirements:
- Valid license for state where driving
- Appropriate license class
- Not suspended or revoked
- Reviewed before hiring
- Periodic re-verification
Agency Obligations:
Verify Insurance:
- Collect insurance cards from all employees
- Verify coverage before employee drives
- Re-verify annually or semi-annually
- Document all verifications
- Maintain copies on file
Check Driving Records:
- Obtain MVRs for drivers
- Review for violations and accidents
- Establish acceptable standards
- Re-check periodically (annually)
- Document decision-making
Maintain Records:
- Insurance verification documents
- MVR reports
- Driver qualification files
- Mileage logs (some policies require)
- Accident reports
Report Changes:
- Notify insurer of employee count changes
- Report any accidents immediately
- Update if driving patterns change
- Inform carrier of new locations
Create Written Policy:
- Who is authorized to drive
- Insurance requirements
- License requirements
- Acceptable uses of personal vehicles
- Prohibited uses
- Accident reporting procedures
- Consequences for violations
H&NO vs. Commercial Auto – Which Do You Need?
Understanding the difference helps ensure you have the right coverage.
When You Need Commercial Auto:
If your agency OWNS or LEASES any vehicles:
- Cars, vans, trucks registered to your business
- Vehicles with business name on title
- Leased vehicles (long-term, over 6 months)
- Vehicles purchased for business use
You MUST have commercial auto insurance. H&NO does not cover vehicles you own.
When You Need H&NO:
If employees use PERSONAL vehicles for work:
- Driving between client homes
- Transporting supplies in own car
- Attending meetings in personal vehicle
- Any business-related driving in personal cars
You need hired and non-owned coverage. Employee personal insurance won’t protect you.
When You Need BOTH:
If you own vehicles AND employees use personal vehicles:
- Company van plus employees drive personal cars
- Some employees use company vehicles, others use own
You need commercial auto (which usually includes H&NO automatically, but verify with carrier).
Key Differences:
Commercial Auto:
- Covers vehicles you own/lease
- Covers vehicle damage (comprehensive/collision)
- Much more expensive ($3,000+ per vehicle)
- Required if you own vehicles
Hired & Non-Owned:
- Covers employee personal vehicles
- Liability only (no vehicle damage coverage)
- Much less expensive ($500 to $2,000)
- Only if you don’t own vehicles
What If You’re Unsure?
Contact your insurance broker. Provide:
- Do you own any vehicles?
- Do employees use personal vehicles for work?
- How many employees drive?
- What’s the driving activity?
Broker will recommend appropriate coverage.
What Hired & Non-Owned Auto Insurance Doesn’t Cover
Understanding H&NO exclusions helps identify coverage gaps and ensures realistic expectations.
Damage To Employee’s Personal Vehicle
Hired and non-owned coverage only protects your liability to OTHERS. It doesn’t cover damage to the employee’s own vehicle. If your employee’s car is damaged in an accident during work, H&NO insurance won’t pay for repairs. The employee’s personal comprehensive and collision coverage must pay, or they repair out of pocket.
Examples of Excluded Claims:
- Employee’s car damaged in at-fault accident
- Vehicle repairs after work-related collision
- Damage to employee’s car from hitting object
- Employee vehicle totaled during work activity
- Windshield or body damage from work driving
Solution: Employees should maintain comprehensive and collision coverage on personal vehicles. Some agencies offer mileage reimbursement that helps employees afford better personal insurance.
Vehicles You Own or Lease Long-Term
H&NO coverage specifically excludes vehicles owned or leased by your business. If you own even one vehicle and an employee drives it, H&NO won’t cover that vehicle. You need commercial auto insurance for owned/leased vehicles. Long-term leases (typically over 6 months) are considered owned vehicles.
Examples of Excluded Acts:
- Company car registered to business
- Van with business name on title
- Leased vehicle (multi-year lease)
- Vehicle purchased for business use
- Any vehicle on business auto registration
Solution: Purchase commercial auto insurance for all owned or long-term leased vehicles. Learn about Commercial Auto Insurance
Commercial Delivery or Transportation Services
H&NO excludes coverage if your primary business is delivery, transportation, or for-hire driving services. Coverage is for incidental business use, not commercial transportation as your core business. If you regularly transport clients for compensation as a primary service, you need commercial auto.
Examples of Excluded Claims:
- Operating as transportation company
- Regular for-hire client transportation
- Delivery service as primary business
- Taxi or ride-share type services
- Commercial trucking or hauling
Solution: If regular client transportation is a significant service, discuss with your broker whether you need commercial auto instead of H&NO, or an endorsement to cover transportation activities.
Intentional Acts or Racing
H&NO doesn’t cover intentional vehicle damage, racing, speed contests, or using vehicles for illegal purposes. Accidents from DUI or impaired driving may also be excluded depending on policy terms.
Examples of Excluded Claims:
- Employee racing another vehicle
- Intentional ramming or vehicle damage
- Speed contests or drag racing
- Using vehicle in commission of crime
- Driving under influence of drugs or alcohol
Solution: Implement strict driving policies, conduct background checks, and discipline employees who violate safe driving rules. Zero tolerance for racing, reckless driving, or impaired driving.
Employee Injuries (Workers Comp Territory)
H&NO covers injuries to OTHER people, not your own employees injured in vehicle accidents. If your employee is injured while driving for work, that’s a workers compensation claim, not an auto liability claim.
Examples of Excluded Claims:
- Employee injured in accident during work
- Driver hurt in collision while traveling to client
- Employee passenger injured in work vehicle
- Long-term injuries to employee from work accident
- Permanent disability from work-related accident
Solution: Learn about Workers Compensation Insurance which covers all employee injuries including auto accidents during work hours.
Getting Hired & Non-Owned Auto Coverage
- Step 1Determine If You Need H&NO or Commercial Auto:
Before purchasing coverage, clarify which type of auto insurance your agency needs.
Ask These Questions:
Does your agency own or lease any vehicles?
- If YES: You need commercial auto insurance (H&NO typically included)
- If NO: Continue to next question
Do employees use personal vehicles for business?
- If YES: You need hired and non-owned auto insurance
- If NO: No auto insurance needed (rare for home care)
Do you rent vehicles occasionally?
- If YES: Hired auto coverage recommended
- If NO: Non-owned coverage still needed if employees drive
Most Common Scenarios:
Scenario 1: No Owned Vehicles, Employees Drive Personal Cars Coverage needed: Hired & Non-Owned Auto Insurance This is most common for small to medium home care agencies.
Scenario 2: You Own Vehicles AND Employees Use Personal Cars Coverage needed: Commercial Auto Insurance (should include H&NO) Verify your commercial auto includes hired and non-owned coverage.
Scenario 3: You Own All Vehicles, Employees Never Use Personal Cars Coverage needed: Commercial Auto Insurance only H&NO not necessary if employees never drive personal vehicles for work.
If You’re Unsure: Contact insurance broker with specifics about your operations.
- Step 2Assess Your Driving Activity:
Understanding your driving activity helps determine appropriate coverage limits and identifies risks.
Information to Gather:
Number of Drivers:
- How many employees drive for work?
- Full-time vs. part-time drivers?
- How often does each employee drive?
Annual Mileage:
- Total business miles driven annually by all employees?
- Average per employee?
- Local (under 50 miles) or long-distance?
Type of Driving:
- Between client homes?
- Transporting clients?
- Carrying supplies/equipment?
- Attending meetings?
- Multiple purposes?
Geographic Area:
- One county or multiple?
- Urban, suburban, or rural?
- Highway driving or local streets?
Driving Patterns:
- Daily driving or occasional?
- Rush hour traffic?
- Night driving?
- Weather conditions?
This assessment helps carriers price coverage accurately and helps you identify risk reduction opportunities.
- Step 3Gather Employee Information:
H&NO insurance requires information about employees who drive. Gathering this before applying speeds up the process.
Information Needed:
For Each Driver:
- Full name and date of birth
- Driver’s license number and state
- Years licensed
- Personal auto insurance carrier
- Personal auto policy limits
- Motor vehicle report (MVR)
MVR Information:
- Violations past 3 years
- Accidents past 3 to 5 years
- License suspensions
- DUI or serious violations
How to Obtain MVRs:
- Order from state DMV ($5 to $15 each)
- Use MVR service provider
- Some insurance brokers obtain for you
- Need employee permission
Employee Insurance Verification:
- Copy of insurance card
- Declarations page if available
- Proof of coverage
- Current and continuous
Best Practice: Collect this information for all employees during hiring and update annually.
- Step 4Compare H&NO Quotes:
Hired and non-owned policies vary in coverage scope and pricing. Compare carefully.
What to Compare:
Coverage Limits:
- Combined single limit amount
- $500K, $1M, or $2M?
- Which limit do you need?
Premium Cost:
- Annual premium
- Payment options
- Deposit required
- Additional charges
Employee Requirements:
- Minimum insurance employees must carry
- License requirements
- MVR standards
Drop-Down Coverage:
- Does policy cover uninsured employees?
- At same premium or additional cost?
- Important feature for protection
Deductible:
- Most H&NO has no deductible
- Verify no hidden deductibles
- Some policies have small deductibles
Rental Vehicle Coverage:
- Hired auto included?
- Any limits on rental coverage?
- Short-term only or longer leases?
Defense Coverage:
- Defense outside limits?
- Defense inside limits erodes coverage
- Outside limits is better
Carrier Quality:
- Financial strength rating (A- or better)
- Claims handling reputation
- Experience with home care
- Customer service quality
Exclusions:
- What’s excluded?
- Narrow or broad exclusions?
- Any unusual limitations?
- Step 5Implement Driver Management Practices:
After purchasing H&NO coverage, implement strong driver management to maintain coverage and reduce claims.
Create Written Driving Policy:
Policy Should Address:
- Who can drive for business
- Insurance requirements
- License requirements
- Acceptable uses of personal vehicles
- Prohibited activities (racing, impaired driving)
- Accident reporting procedures
- Consequences for violations
Distribute to All Employees:
- Provide written policy
- Require signed acknowledgment
- Review during orientation
- Annual review with updates
Verify Insurance Regularly:
Establish Verification Schedule:
- Before employee drives (first time)
- Annual verification (all drivers)
- After any lapse notifications
- Random spot checks
Document Everything:
- Copies of insurance cards
- Verification dates
- Who conducted verification
- Any issues found
Monitor Driving Records:
Obtain MVRs:
- At hiring
- Annually for all drivers
- After any incidents
- When employees move states
Review for:
- New violations
- Accidents
- License suspensions
- DUI or serious violations
Take Action:
- Establish acceptable standards
- Discipline violations
- Remove driving privileges if necessary
- Document all decisions
Report Accidents Immediately:
- Written accident report form
- Report to insurance within 24 hours
- Gather evidence and witness info
- Document fully
Annual Policy Review:
- Review coverage annually
- Update employee counts
- Adjust limits as business grows
- Shop for better rates every 2 to 3 years
Ready to protect your home care agency with hired and non-owned auto insurance? We specialize in auto coverage for home care and can help determine if you need H&NO or commercial auto.
Additional Insurance Your Home Care Agency May Need
Hired and non-owned auto insurance is essential if employees drive, but most agencies need additional coverage types.
Commercial Auto Insurance
If you own or lease vehicles, you need commercial auto insurance instead of or in addition to H&NO. Covers owned vehicles for liability and physical damage.
General Liability Insurance
Covers bodily injury and property damage not related to vehicles. Essential for all home care agencies to complement auto coverage.
Workers Compensation Insurance
Covers employee injuries including auto accidents during work. Required by law. Works alongside auto insurance to provide complete protection.
Most home care agencies need hired and non-owned auto (or commercial auto), general liability, professional liability, and workers compensation for complete protection. Contact us for comprehensive coverage assessment.
Hired & Non-Owned Auto Insurance FAQs
Yes. Even occasional driving creates liability exposure. If employees drive to even one client per week, you need coverage. A single accident could cost $500,000+. The premium (often $500 to $1,000) is minimal compared to potential liability. Many contracts also require proof of auto coverage regardless of driving frequency.
Usually not. Most personal auto policies exclude or limit business use. When an accident occurs during work hours while driving for business, the personal insurance company investigates and may deny coverage entirely. Even if they pay, they only cover the employee, not your business. You need separate H&NO coverage for your business protection.
This creates serious problems. Some H&NO policies won’t cover uninsured employees at all. Others provide “drop-down” coverage but charge higher premiums. Best practice: require all employees to carry personal auto insurance with minimum limits ($50,000 to $100,000), verify insurance before allowing driving, and re-verify regularly. Never allow uninsured employees to drive for work.
Yes. You can require employees to carry higher liability limits ($100,000 or more) as a condition of driving for work. Many agencies require $100,000 to $250,000 minimum. If requiring higher limits, consider offering additional mileage reimbursement to help offset employee costs. Document requirements in writing and verify compliance.
No. Commuting between home and regular workplace generally isn’t covered by H&NO (covered by personal insurance). However, driving directly from home to client locations IS covered because that’s business travel, not commuting. Driving from one client to another is covered. Driving from client back home after last client is covered. Only regular home-to-office-to-home commute is excluded.
H&NO covers liability for transporting clients in employee personal vehicles. However, if client transportation is a major service offering, discuss with your broker. Some policies exclude regular transportation services. You may need commercial auto insurance or specific transportation endorsements. Never transport clients without verifying your insurance covers this activity.
Minimum $1 million combined single limit recommended. Many carriers only offer $1M as standard limit. Serious accidents easily exceed $500,000. Given that many employees carry only $25,000 to $50,000 personal insurance, you need substantial coverage to fill the gap. Larger agencies should consider $2M limits. $500,000 limits are inadequate.
Yes. H&NO premiums increase after at-fault accidents, typically 15 to 40% depending on severity. Multiple accidents or one serious accident can result in 50 to 100%+ increases or non-renewal. This is why driver screening, training, and safety policies are critical. Preventing accidents keeps premiums manageable. However, premium increases are far better than paying $500,000+ out of pocket without insurance.
Have more questions about hired and non auto insurance? Contact our specialists for personalized guidance.
Protect Your Home Care Business With Proper Auto Coverage
Don’t risk your business by operating without proper auto insurance. If employees drive personal vehicles for work, you need hired and non-owned auto coverage. A single serious accident could cost $500,000+ and destroy your business.
We specialize in auto insurance for home care agencies. We’ll help you determine whether you need H&NO, commercial auto, or both, and find you comprehensive coverage at competitive rates. Licensed in all 50 states.
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