"I just got quoted $2,000 for hired and non-owned auto coverage for my home inspector. Does this sound right? "
Paying for a hired and non-owned auto liability insurance needs a little more review than you thought. This is a very important policy which you should get if you have multiple home inspectors working for you. However, there are a lot of factors needs to be checked.
First of all, as a company owner, you should be careful enough to make sure that you have the right coverage, especially on the worst-case scenario. This is, of course, without overpaying the policy.
What does a hired and non-owned auto coverage mean?
This is a liability coverage for accident damages which are caused by a hired vehicle or an auto that you do not personally own. However, this doesn't cover the damages on the vehicle itself.
Below is a Q and A sessions with Ken Compton and Coach Malcolm Godwin video. Here they discussed the importance of how you should keep an eye on how your policy is written. In addition, they also discussed the different angles or situations that could make use of your hired and non-owned auto coverage.
"So let's say this, let's say Malcolm didn't have hired and non-auto coverage on his policy, on his business owner policy or bought that he has for his business, he didn't add this endorsement or this add on if you will. Then what happens is Mary gets her coverage from personal auto policy and Malcolm's got no coverage. So if a judgment is rendered for a 100 grand against Malcolm plus defense cost, Malcolm has no insurance to cover. He's assumed a 100% at risk and now he's going to pay up. Malcolm, this doesn't sound like a good thing does it?"
By now, you should realize that getting this kind of policy for a hired home inspector is very tricky. You need to discuss it with your inspector and with the policy provider as up to how much you should be liable should anything arises.
On the full video below, Ken Compton and Coach Malcolm talk about the importance of knowing the dos and don’ts for your non-owned auto liability insurance.