Commercial Auto and Hired & Non-Owned Auto Insurance
for Nonprofit Organizations

Many nonprofits and social services organizations rely on vehicles for at least part of their work. Perhaps you run a church that owns buses for your school program and vans for group outings. Or maybe your food bank regularly rents vehicles to help with food collection and distribution.

Whatever the case may be, there’s a Commercial Auto Insurance or Hired & Non-Owned Auto Insurance policy to fit your organization and help protect your vehicles, employees, volunteers, and passengers.

Traffic accidents happen every day. In fact, they are the number-one cause of accident-related death in the country. And with medical expenses, vehicle damage, and potential legal fees to worry about, traffic accidents can be a huge expense.

In its 2011 Injury Factbook New browser window icon., the National Safety Council reported that motor-vehicle accidents cost employers about $20.5 billion each year. This number takes all associated costs into consideration, including productivity loss.

But medical expenses and vehicle damage expenses totaled $4.1 billion on their own. Luckily, those expenses can be shouldered by a Commercial Auto or Hired & Non-Owned Auto Insurance plan.

Commercial Auto vs. HNOA

Nonprofits and Social Services Organizations: Commercial Auto Insurance vs. Hired & Non-Owned Auto Insurance

Some nonprofits and social service organizations require Commercial Auto Insurance, while others need a Hired & Non-Owned Auto Insurance policy. Still others can benefit from both. Read on to learn more about each type of insurance.

Commercial Auto Insurance for Nonprofits and Social Service Organizations

If your nonprofit or social service organization drives business-owned vehicles, then a Commercial Auto Insurance policy will fit with the rest of your small business insurance plan. Here’s what we mean by “owned vehicle:”

  • Owned by the organization. If your organization owns vehicles — buses, trucks, vans, passenger cars — that it uses only for work purposes, then your Commercial Auto Insurance policy can protect them. This is true even for organization-owned vehicles that only one employee drives. Business owners are not legally allowed to pass the expense of Commercial Auto Insurance to employees.
  • Owned by you. If you often use your personal vehicle for work, then you need Commercial Auto Insurance to fill the coverage gap left by your Personal Auto Insurance policy. Your Personal policy likely excludes coverage for work-related driving and work-related accidents. For example, if you got into an accident while driving your shelter dogs to the dog park, your Personal Auto Insurance policy could deny the claim.

Read on to learn about the insurance policy that covers borrowed, rented, and other non-owned vehicles.

Hired & Non-Owned Auto Insurance for Nonprofits and Social Services Organizations

Nonprofits and social services organization benefit from Hired & Non-Owned Auto Insurance when their owners or employees drive vehicles that the company does not own. This can include:

  • Rental cars. Every once in a while, you may have to rent a car for your organization — whether it’s for a business trip to a professional conference, a limo for a fundraising event, or because your overnight camp is renting vans for a fieldtrip. Having Hired & Non-Owned Auto Insurance means you don’t have to pay the extra fees for insurance after you sign the rental contract.
  • Volunteer / employee vehicles. You may ask folks who volunteer or work for your organization to drive their personal cars for work. If they get into an accident on the job, you may be held liable, and their Personal Auto Insurance policies may deny their claim because personal policies don’t usually include coverage for work driving. Hired & Non-Owned Auto Insurance can protect anyone who drives on behalf of your organization.
  • Car sharing services. Especially if your organization operates in a larger city, you may take advantage of the convenience of car-sharing services. Most of these services advertise that their Auto Insurance is included in the price of the rental. But this coverage may not be enough for all types of accidents — especially if there are multiple injuries involved. Many of these “free” insurance policies have limits of $300,000 or less per accident — not per injury. Bodily injury coverage for drivers also tends to be minimal. Hired & Non-Owned Auto Insurance can pay for what these complementary policies do not cover.

Hired & Non-Owned Auto Insurance is an affordable policy that can be bundled with your General Liability Insurance or purchased as standalone coverage.

Auto Insurance Protects

How Commercial Auto and Hired & Non-Owned Auto Insurance Protects Nonprofits and Social Services Organizations

Commercial Auto Insurance and Hired & Non-Owned Auto Insurance are designed to help nonprofits and social services organizations absorb the high expense of automotive accidents.

The National Highway Traffic Safety Administration (NHTSA) estimates that work-related traffic crashes cost employers $128,178 per injury.

Many nonprofits and social services organizations are at a greater risk for loss because they are often responsible for transporting multiple people at once — think about the church school bus route or the vans that take people from your senior center to the botanical garden.

Here are some of the expenses that an Auto Insurance policy can help pay for in the event of an accident:

  • Property damage. In addition to vehicle damage (both yours and another party’s) that results from traffic accidents and other collisions, some Auto Insurance policies can help you repair / replace vandalized or stolen vehicles.
  • Medical expenses. This part of your Auto Insurance coverage can help you pay for the medical expenses of drivers, passengers, and other injured parties.
  • Legal expenses. If your organization is responsible for an auto accident that injures another individual, there may be a lawsuit in your future. Some Auto Insurance policies can help pay for legal expenses.

If your nonprofit is found liable for an auto accident, your Commercial Auto Insurance or Hired and Non-Owned Auto Insurance will kick in to cover the expenses up to you policy’s stated limits.

You can extend that limit by adding an Excess Liability / Umbrella Liability Insurance policy to your small business insurance plan. It’s an affordable (only a few hundred dollars a year) policy that can increase your Auto Insurance and General Liability policies by $1 million.

Get Free Quotes

Commercial Auto Insurance or Hired & Non-Owned Auto Insurance Quotes for Nonprofits and Social Services Organizations

Your nonprofit or social services organization won’t have to worry about the cost of traffic accidents after you’ve secured a Commercial Auto Insurance or Hired & Non-Owned Auto Insurance policy. To get your free insurance quotes, contact an insureon agent or fill out an online application.

Grab-n-Go Information

Nonprofit Risks eBook
Certainty in Uncertain Times - A Nonprofit’s Guide to Risk Management
Browse eBook
Sample certificates
See a sample Certificate of Liability Insurance, the proof of coverage you need for most contracts.
View Sample
Sample Quotes & Cost Estimates
See what insurance really costs: actual quotes by policy & specialty.
Get Estimates
Ask A Question
Submit your questions about small business insurance and get answers from our experts.
Read Answers