What is Non-owned/hired auto insurance?
This type of insurance is for coverage in situations where your employees or volunteers are driving vehicles that are NOT owned by the nonprofit while engaged in the nonprofit’s business or their work for the nonprofit. The purpose of this policy is to provide what is known as “excess coverage” because the insurance of the owner of the vehicle will be primary. If there is an accident that results in injury that exceeds the limits or is not covered by the insurance of the vehicle’s owner, there is a possibility that the nonprofit will be sued. Non-owned/hired auto insurance is to provide coverage to protect the nonprofit should such a situation arise.
