The purpose of auto insurance is to provide protection against physical damage and/or bodily injury resulting from auto accidents.
But, why can't you just use your personal auto policy, you ask? That is a great question! Your personal auto policy typically won't pay for damages or bodily injuries if you are using your own vehicle to transport people or goods in the course of running your business. The insurance carriers deem these activities at much higher risk than say, simply picking up some groceries or dropping your kids off at basketball practice. A commercial auto policy does generally offer higher liability coverage but requirements do vary from state to state.
Hired & Non-Owned Auto: Many organizations assume that if they don't own a vehicle, they don't need auto coverage. Hired & Non-owned Auto Insurance is for vehicles that an organization uses but does not own. These vehicles can be leased, hired, rented or owned by an employee or volunteers and used to conduct company business.
Hired & Non-Owned Auto helps to bridge the gap where your commercial auto policy leaves off.