Non-Owned Auto
Coverage for liability arising from vehicles not owned by the insured but used for business, such as employee personal cars.
What It Is
Non-Owned Auto coverage, designated by Symbol 9 on the Business Auto Coverage Form, provides liability protection when employees or other individuals use vehicles they personally own to conduct the insured's business. This is strictly a liability coverage—it does not cover physical damage to the employee's personal vehicle.
This coverage is essential for virtually every business because even companies that provide company cars often have employees who occasionally drive their own vehicles for errands, client meetings, or other business purposes. The employee's personal auto policy is primary, but if its limits are exhausted, the employer's non-owned auto coverage responds as excess.
Non-owned auto coverage does not apply to vehicles owned by partners or family members who live in the same household as the named insured if the insured is an individual. It strictly covers liability arising from vehicles owned by others but used in the insured's business operations.
Why It Matters for Brokers
Non-owned auto is one of the most commonly overlooked coverages in commercial insurance. Almost every business has employees who occasionally use personal cars for work purposes, creating vicarious liability exposure for the employer. Without Symbol 9, a judgment against the business from an employee's at-fault accident while on company business would be uninsured. Brokers should recommend this coverage to nearly every commercial account.
Real-World Example
A real estate agency with 15 agents who all drive personal vehicles to show properties carries no non-owned auto coverage. Agent Mike causes a $500,000 accident driving to a showing. Mike's personal auto policy has $100,000/$300,000 limits. The injured party sues both Mike and the agency. Mike's policy pays $100,000, leaving $400,000 uncovered. Without non-owned auto on the agency's commercial policy, the agency pays the $400,000 out of pocket. With Symbol 9 providing $1M in non-owned auto liability, the commercial policy would have covered the excess.
Common Mistakes
- 1Assuming non-owned auto coverage includes physical damage to the employee's personal vehicle—it covers liability only.
- 2Failing to recommend non-owned auto for office-based businesses where employees occasionally run errands or attend off-site meetings.
- 3Confusing non-owned auto with hired auto—non-owned covers employee-owned vehicles while hired covers rented or leased vehicles.
How brokerageaudit.com Handles This
brokerageaudit.com's Policy Checker verifies that every commercial auto policy with employees listed includes Symbol 9 or Symbol 1 for liability. The platform's Submission Intake questionnaire specifically asks whether any employees use personal vehicles for business, and if the answer is yes, flags accounts missing non-owned auto coverage.