Understanding the Importance of Hired and Non-Owned Auto Insurance for Dentists

You may assume that your commercial auto insurance policy covers all vehicle-related risks associated with your practice. However, there are two often overlooked exposures that require special attention: hired and non-owned auto liability. In this blog post, we’ll explore what hired and non-owned auto coverage entails, why it’s crucial for dentists, and how it can help protect your practice from potentially devastating financial consequences.

What is Hired Auto Coverage?

Hired auto coverage is an insurance that protects your dental practice when you or your employees rent, hire, or borrow vehicles for business purposes. This coverage extends your liability protection to vehicles that are not owned by your practice but are used for business-related activities. Examples of situations where hired auto coverage applies include:

• Renting a car for a business trip or conference
• Borrowing a vehicle to transport equipment between offices
• Hiring a vehicle for a special event or marketing initiative

Without hired auto coverage, your practice could be held liable for damages or injuries caused by an accident involving a rented or borrowed vehicle used for business purposes.

What is Non-Owned Auto Coverage?

Non-owned auto coverage protects your dental practice when employees use their personal vehicles for business-related activities. This coverage extends your liability protection to situations where your practice is held responsible for accidents caused by employees while driving their own cars for work. Examples of situations where non-owned auto coverage applies include:

• An employee using their personal car to run errands for the practice, such as picking up supplies or making bank deposits
• An employee driving their own vehicle to attend a work-related conference or meeting
• An employee using their personal car to transport patients to and from your office

Without non-owned auto coverage, your practice could be exposed to significant liability if an employee causes an accident while using their personal vehicle for business purposes.

Why Dentists Need Hired and Non-Owned Auto Coverage

Dentists and their practices can benefit from hired and non-owned auto coverage in several ways:

1. Liability protection: This coverage helps protect your practice from the financial consequences of accidents caused by employees while driving rented, borrowed, or personal vehicles for business purposes.
2. Gap coverage: Hired and non-owned auto coverage fills the gap between your commercial auto policy and the coverage provided by rental companies or employees’ personal auto insurance.
3. Peace of mind: Knowing that your practice is protected from vehicle-related liabilities, even when you don’t own the vehicle, can provide peace of mind and allow you to focus on providing quality patient care.
4. Contractual compliance: Some contracts, such as leases or vendor agreements, may require your practice to carry hired and non-owned auto coverage.

How to Obtain Hired and Non-Owned Auto Coverage

Hired and non-owned auto coverage is typically available as an endorsement to your practice’s commercial auto policy or business owner’s policy (BOP). To obtain this coverage, work with an experienced insurance professional who understands the unique needs of dental practices. They can help you assess your risks, determine the appropriate coverage limits, and secure the necessary endorsements to protect your practice.