HNOA
Hired and Non-Owned Auto coverage, often added as a CGL endorsement for businesses with no owned vehicles needing auto liability protection.
What It Is
HNOA stands for Hired and Non-Owned Auto coverage, a combined coverage addressing liability from vehicles the business rents (hired) and employee-owned vehicles used for business (non-owned). While HNOA can be provided through a standalone Business Auto policy using Symbols 8 and 9, it is also commonly added as an endorsement to a Commercial General Liability policy for businesses that do not own any vehicles.
The CGL-endorsed version is popular with professional service firms, consultants, and other businesses without fleets that still face auto liability exposure from employee driving. This approach is often more cost-effective than purchasing a separate Business Auto policy when the only exposure is hired and non-owned.
However, the CGL endorsement version typically provides less comprehensive coverage than a standalone auto policy. It may not include auto medical payments, uninsured motorist coverage, or hired auto physical damage—coverages that are available on the Business Auto form.
Why It Matters for Brokers
HNOA is critical for brokers placing coverage for professional firms, staffing agencies, and service businesses. Missing HNOA coverage is one of the top 10 E&O claim triggers for commercial brokers. Many businesses assume their CGL covers all liability, not realizing the auto exclusion in the CGL form eliminates coverage for vehicle-related incidents unless HNOA is specifically endorsed.
Real-World Example
An accounting firm with 25 employees and no company vehicles adds HNOA to their CGL for $650 annually. An associate driving to a client's office causes a $275,000 accident. The associate's personal auto policy pays $50,000 (their liability limit), and the firm's HNOA coverage picks up the remaining $225,000. Without HNOA, the firm would have had to pay the $225,000 from operating funds after the CGL denied the claim due to the auto exclusion.
Common Mistakes
- 1Assuming the CGL automatically covers auto-related liability without the HNOA endorsement—the standard CGL excludes auto bodily injury and property damage.
- 2Not upgrading from a CGL HNOA endorsement to a standalone Business Auto policy when the client acquires owned vehicles.
- 3Overlooking HNOA for businesses classified as low-risk or office-only, where employees still drive to meetings, banks, or the post office.
How brokerageaudit.com Handles This
brokerageaudit.com's Policy Checker scans every CGL policy for the auto exclusion and checks whether the account has a separate Business Auto policy or an HNOA endorsement. If neither is found, it generates a priority alert to the broker. The COI Manager also verifies HNOA when certificate holders request proof of auto coverage from a client without owned vehicles.