Add These Riders to Strengthen Commercial Auto Coverage

If your business owns or uses vehicles, a standard commercial auto policy is only a baseline within your broader commercial insurance program. Real operations create coverage gaps around who’s driving, whose vehicles are used, and what happens when a vehicle is out of service. The right riders (endorsements) help close those gaps so one accident doesn’t turn into a major financial setback.

Why Standard Commercial Auto Policies Aren’t Always Enough

A basic commercial auto policy is designed for vehicles titled to the business and used in predictable ways, but many companies work differently. Any of these situations can create gaps if your policy doesn’t include the right endorsements:

• Employees sometimes drive their own cars for work errands or deliveries.

• Owners may use a personal vehicle to visit clients or job sites.

• Vehicles can sit in the shop for days or weeks after an accident.

• Tools, materials, or custom equipment live inside or on top of your vehicles.

Key Riders That Can Fill Dangerous Gaps

1. Hired and Non-Owned Auto Coverage

This rider helps when your business relies on vehicles it doesn’t own, such as employee-owned cars or short-term rentals. If an employee causes an accident while driving their own car for a work errand, their personal policy may not fully protect your business.

2. Drive Other Car Coverage for Owners

Many owners title their vehicles personally but still use them for business tasks. Drive Other Car coverage extends certain commercial auto protections to a personally titled vehicle that’s being used for business, which can help if you don’t want a separate commercial policy on that car.

3. Rental Reimbursement and Downtime Protection

Even a minor accident can keep a vehicle off the road while it’s being repaired. Rental reimbursement can help pay for a temporary replacement so you can keep running routes and meeting customers. Some policies also offer downtime or loss-of-use coverage to help offset lost income while a key vehicle is out of service.

4. Custom Equipment and Tools on Your Vehicles

Contractors, service companies, and delivery businesses often upfit their vehicles with ladder racks, toolboxes, lift gates, signage, or refrigeration units, and they may store valuable tools or inventory in the vehicle. A custom equipment or tools endorsement can help cover those add-ons and contents if they’re damaged or stolen.

How to Decide Which Riders You Need

Start by mapping how your vehicles are actually used and comparing that picture to your current policy. Anywhere you see a mismatch, there’s a good chance a rider can help. Try asking:

• Do employees run errands or make deliveries in their own cars?

• Do you rent trucks or vans during busy seasons?

• Are owners driving personal vehicles for business meetings or client visits?

• How specialized and expensive is the equipment on (or in) your vehicles?

Talk With a Local Commercial Auto Specialist

A local commercial auto insurance specialist can review how your fleet works, explain which riders are available, and help you avoid gaps between your commercial auto policy and the rest of your coverage. Consider how riders might support both your business auto coverage and other parts of your risk management plan.

Commercial auto insurance is a single piece of the puzzle that keeps your business assets protected. If you’re unsure whether your current coverage has gaps, it may be time to talk with a local commercial insurance specialist who understands businesses like yours and the vehicles you rely on every day.

Disclaimer: This content is for general informational purposes only and is not a substitute for advice from a licensed insurance professional.

Does Your Company Need Hired & Non-Owned Auto Coverage?

Many Texas businesses rely on employee vehicles for errands, deliveries, or customer visits. What happens if an accident occurs while driving for work? Hired and non-owned auto coverage (HNOA) protects your company when employees or contractors use personal or rented vehicles for business tasks. It’s one of the most overlooked extensions of commercial auto insurance that can save you from costly liability claims.

What Hired & Non-Owned Auto Coverage Actually Covers

HNOA insurance protects businesses from claims of property damage or bodily injury caused by vehicles not owned by the company. If an employee gets into an accident while driving their own car to a client site, your business can still be sued. This policy covers legal defense, settlements, and judgments when a personal auto policy falls short.

When Your Business Needs It Most

Even small companies face exposure. Do staff members pick up supplies, deliver parts, or visit customers? Each trip creates liability. According to the Insurance Information Institute, more than 20% of all commercial claims involve employee-driven personal vehicles. Without HNOA, your business could be responsible for medical costs and legal fees that exceed an employee’s personal limits.

Common Scenarios Where Coverage Applies

Each of these incidents can trigger liability for the employer, even though the company doesn’t own the vehicle involved. Lawsuits often name both the driver and the business, regardless of who owns the car. Without hired and non-owned auto coverage, one accident could create financial exposure that ripples through the entire company:

• Errands: An employee uses their vehicle for a business purchase and hits another car.

• Deliveries: A contractor delivers equipment using a rented van.

• Client visits: A manager drives their car to a meeting and causes an accident.

• Rented vehicles: Staff rent a car for out-of-town business travel.

What HNOA Doesn’t Cover

This policy doesn’t protect physical damage to employee vehicles—it covers liability only. Businesses that rent cars frequently should consider a rental damage waiver or add physical damage endorsements. Your independent insurance agent can explain where coverage stops and recommend cost-effective options to fill the gaps.

Policy Limits and Coordination with Personal Insurance

Even with hired and non-owned auto coverage in place, understanding how limits coordinate with personal insurance is vital. The employee’s policy responds first; your business coverage steps in when their limits are exceeded. Because jury verdicts and repair costs keep climbing, most companies should choose at least $1 million in liability protection. Review endorsements annually—especially if your business expands routes, hires more drivers, or adds rental vehicles for seasonal work.

How to Strengthen Your Commercial Auto Strategy

Pairing HNOA coverage with your standard commercial auto insurance ensures you’re protected in every driving scenario—owned, rented, or borrowed. An independent agency like Garrett Insurance reviews all vehicle-related exposures and tailors limits to your real-world operations, not just your fleet list.

Disclaimer: This content is for educational purposes only and does not constitute legal advice.