Chapter 2: Building Your Business Protection Blueprint
Part 2: Industry-Specific Insurance Needs for Architects, Engineers, and Design Professionals
Hired and Non-Owned Auto Insurance: Protection for Architects, Engineers, and Designers on the Move
The nature of your work probably requires you to use a vehicle to meet with clients and visit jobsites. Because you are a sole practitioner with no employees, there is a (slim) chance that your Personal Auto and Personal Umbrella Liability policies will cover the expenses arising from work auto accidents.
We like the AIA's advice in its Small Projects Practitioners article: get written confirmation from your personal insurance agent about your coverage for crashes that happen on business time. But don't be surprised if your personal agent can't offer business coverage on a personal policy.
Most Personal Auto policies exclude "business use," which means you may need another kind of insurance: Hired and Non-Owned Auto Insurance.
Hired and Non-Owned Auto coverage can insure any vehicles that you use for work that your business doesn't own — such as rental cars and your own personal vehicle. In the event of an auto accident while you're out on business, Hired and Non-Owned Auto Insurance will help you pay for litigation costs when the other driver sues your business. You won't have to break your bank to cover your…
- Legal defense fees.
- Court-ordered compensation.
Keep in mind that a HNOA policy can only cover tort costs arising from a work-related auto collision. It doesn't cover physical damages to your vehicle.
One of the main benefits of carrying Hired and Non-Owned Auto Insurance is that it protects your business even if you are at fault for an accident.
NEXT: Certificates of Liability Insurance: Show Your Clients You're Covered