DBA Insurance Agent
Automobile Liability Insurance

What is Automobile Liability?

Hired and Non-Owned Automobile Liability

Government contracts require Automobile Liability. It is used to protect against risks related to automobile accidents where people may be hurt and/or physical damage occurs. Even if vehicles are not owned by the company seeking insurance, the FAR requires automobile liability to be part of the insurance requirement.

Hired and Non-Owned Automobile Liability

But we don’t own any vehicles!

Hired and Non-Owned Liability covers vehicles your company doesn’t own but still considered a risk.

For instance, if your employees use their car or truck for company business and have an accident, their personal insurance would be the first line of defense. But, if the accident costs more than the personal automobile insurance limits provide, then the business auto liability policy would apply to protect your business. This is called “Hired and Non-Owned Automobile Liability” and it’s there to ensure the government is protected from any operations your business may be involved with that spans the contract.

For owned vehicles, automobile liability is needed to simply address the risk against injuries and property damage associated with auto accidents. Depending on the type of work performed, type of vehicle(s) operated, cost of vehicles, and driver records, the cost of premium varies quite a bit.