Coverage Snapshot: NEMT companies should review hired and non-owned auto exposure when employees, attendants, owners, or contractors use personal, rented, or borrowed vehicles for business tasks. A commercial auto policy may not automatically address every vehicle use. Coverage depends on the facts, underwriting, endorsements, exclusions, and issued policy wording.
What is hired and non-owned auto exposure?
Hired auto generally refers to vehicles a business rents, leases, or borrows. Non-owned auto generally refers to vehicles the business does not own but that may be used for business purposes, such as an employee’s personal car.
For NEMT operations, this can come up when someone runs an errand, transports supplies, moves between locations, or performs a business task outside the scheduled vehicle list.
Why does this matter for NEMT operators?
NEMT insurance is already vehicle-sensitive because passengers, drivers, attendants, contracts, and schedules all matter. If the only vehicles reviewed are the scheduled vans, the business may miss other auto exposures that still relate to operations.
- Employees using personal vehicles for business errands.
- Temporary rentals while a scheduled vehicle is down.
- Borrowed vehicles used for administrative or operational tasks.
- Contract requirements asking for broader auto liability wording.
What should be gathered for an insurance review?
- Vehicle schedule and ownership details.
- Driver list, MVR procedures, and driver screening process.
- Details on any personal, rented, borrowed, or substitute vehicle use.
- Contracts requiring auto liability, additional insured status, or specific limits.
- Prior auto claims and current declarations.
To begin the commercial auto review, Start a commercial auto request. For broader NEMT liability review, WHINS also uses the NEMT general and professional liability application and, when applicable, the abuse and molestation supplemental application. Completed applications can be emailed to [email protected].
Common questions
Does commercial auto automatically cover employee personal vehicles?
Not always. Hired and non-owned auto should be specifically reviewed with the carrier and policy form.
Is this the same as insuring an NEMT van?
No. Scheduled vehicle coverage and hired or non-owned auto exposure are related but different underwriting issues.
Written by Stella Torres, Insurance Advisor at WHINS Insurance Agency. CA License #0K22577 | NPN #17580360.
This post is for educational and marketing purposes only and does not constitute coverage advice. Coverage is subject to underwriting, carrier appetite, and the terms, conditions, limitations, and exclusions of the issued policy.
