Insurance Comparison
Commercial Auto vs Hired & Non-Owned Auto Coverage
Understand the difference between commercial auto insurance and hired & non-owned auto coverage, and why your tree service likely needs both.
| Dimension | Commercial Auto Policy | Hired & Non-Owned Auto (HNOA) Coverage |
|---|---|---|
| What It Covers | Vehicles your tree service owns or leases that are listed on the policy — chip trucks, crane trucks, pickup trucks, flatbeds, and aerial lift trucks. | Vehicles your company rents (hired) or employee-owned vehicles used for business purposes (non-owned). |
| Vehicle Schedule | Each vehicle must be individually listed on the policy with its VIN, year, make, and model. New vehicles must be added within 30 days of acquisition. | No vehicle schedule required. Coverage is blanket for any hired or non-owned vehicle used for business. |
| Typical Premium | Tree service commercial auto runs $3,000-$8,000+ per vehicle per year depending on vehicle type, driver history, and radius of operation. | HNOA is typically $300-$800 per year as an endorsement to your GL policy or as part of a BOP. |
| Liability Coverage | Covers bodily injury and property damage liability when your owned vehicles are in an accident. Standard limits: $1M combined single limit (CSL). | Covers your company's vicarious liability when an employee causes an accident in a rented or personal vehicle while on company business. |
| Physical Damage | Comprehensive and collision coverage available for your owned vehicles. Critical for expensive equipment trucks worth $80,000-$200,000+. | Does not cover physical damage to hired vehicles. Rental truck damage requires separate rental coverage or the rental company's damage waiver. |
| Who Is Insured | Your company and all scheduled drivers. Permissive use typically extends to employees driving with authorization. | Your company only — not the individual driver. The employee's personal auto policy remains primary for their own vehicle. |
| When It Applies | Any time a scheduled vehicle is driven, whether for business or (in some cases) personal use by scheduled drivers. | Only when a hired or non-owned vehicle is being used for business purposes — driving to a job site, picking up supplies, meeting with clients. |
| Loading & Unloading | Commercial auto covers loading and unloading operations — critical when your crew is loading logs onto a chip truck and damages a parked car. | HNOA does not typically cover loading and unloading operations on non-owned vehicles. |
| Common Gap | Failing to add a newly purchased vehicle within the policy's automatic coverage period (usually 30 days) can leave it uninsured. | Failing to carry HNOA when employees drive personal vehicles to job sites — if an employee causes an accident going to a job, your company can be sued and has no auto coverage for that vehicle. |
| Best For | Any tree service that owns or leases vehicles (which is virtually all of them). | Any tree service where employees ever drive personal or rented vehicles for business — running to the supply house, driving between job sites, renting a vehicle when a truck is in the shop. |
What It Covers
Commercial Auto Policy
Vehicles your tree service owns or leases that are listed on the policy — chip trucks, crane trucks, pickup trucks, flatbeds, and aerial lift trucks.
Hired & Non-Owned Auto (HNOA) Coverage
Vehicles your company rents (hired) or employee-owned vehicles used for business purposes (non-owned).
Vehicle Schedule
Commercial Auto Policy
Each vehicle must be individually listed on the policy with its VIN, year, make, and model. New vehicles must be added within 30 days of acquisition.
Hired & Non-Owned Auto (HNOA) Coverage
No vehicle schedule required. Coverage is blanket for any hired or non-owned vehicle used for business.
Typical Premium
Commercial Auto Policy
Tree service commercial auto runs $3,000-$8,000+ per vehicle per year depending on vehicle type, driver history, and radius of operation.
Hired & Non-Owned Auto (HNOA) Coverage
HNOA is typically $300-$800 per year as an endorsement to your GL policy or as part of a BOP.
Liability Coverage
Commercial Auto Policy
Covers bodily injury and property damage liability when your owned vehicles are in an accident. Standard limits: $1M combined single limit (CSL).
Hired & Non-Owned Auto (HNOA) Coverage
Covers your company's vicarious liability when an employee causes an accident in a rented or personal vehicle while on company business.
Physical Damage
Commercial Auto Policy
Comprehensive and collision coverage available for your owned vehicles. Critical for expensive equipment trucks worth $80,000-$200,000+.
Hired & Non-Owned Auto (HNOA) Coverage
Does not cover physical damage to hired vehicles. Rental truck damage requires separate rental coverage or the rental company's damage waiver.
Who Is Insured
Commercial Auto Policy
Your company and all scheduled drivers. Permissive use typically extends to employees driving with authorization.
Hired & Non-Owned Auto (HNOA) Coverage
Your company only — not the individual driver. The employee's personal auto policy remains primary for their own vehicle.
When It Applies
Commercial Auto Policy
Any time a scheduled vehicle is driven, whether for business or (in some cases) personal use by scheduled drivers.
Hired & Non-Owned Auto (HNOA) Coverage
Only when a hired or non-owned vehicle is being used for business purposes — driving to a job site, picking up supplies, meeting with clients.
Loading & Unloading
Commercial Auto Policy
Commercial auto covers loading and unloading operations — critical when your crew is loading logs onto a chip truck and damages a parked car.
Hired & Non-Owned Auto (HNOA) Coverage
HNOA does not typically cover loading and unloading operations on non-owned vehicles.
Common Gap
Commercial Auto Policy
Failing to add a newly purchased vehicle within the policy's automatic coverage period (usually 30 days) can leave it uninsured.
Hired & Non-Owned Auto (HNOA) Coverage
Failing to carry HNOA when employees drive personal vehicles to job sites — if an employee causes an accident going to a job, your company can be sued and has no auto coverage for that vehicle.
Best For
Commercial Auto Policy
Any tree service that owns or leases vehicles (which is virtually all of them).
Hired & Non-Owned Auto (HNOA) Coverage
Any tree service where employees ever drive personal or rented vehicles for business — running to the supply house, driving between job sites, renting a vehicle when a truck is in the shop.
What Tree Service Companies Need to Know
Tree services are vehicle-intensive businesses. A typical operation runs a fleet that includes one or more chip trucks, a crane truck, pickup trucks for crew leaders, a flatbed for hauling equipment, and possibly a bucket truck or aerial lift. Commercial auto insurance is not optional — it covers your owned fleet for liability and physical damage, and it is legally required in every state.
What many tree service owners overlook is the gap that exists when vehicles not on their commercial auto policy are used for business. If your foreman drives his personal F-150 to a job site and rear-ends someone on the way, the injured party can sue both the foreman and your company. Your commercial auto policy does not respond because the F-150 is not a scheduled vehicle. The foreman's personal auto policy covers him but not your company. Without Hired & Non-Owned Auto coverage, your tree service has no auto liability protection for that accident.
HNOA coverage fills this gap at a remarkably low cost — typically $300 to $800 per year as an endorsement to your GL policy. It covers your company's vicarious liability when employees use personal vehicles for business or when you rent vehicles (for example, renting a truck when your chip truck is in the shop after a breakdown). It does not cover physical damage to the vehicle itself, and it does not replace the employee's personal auto coverage — it protects your company.
The hired auto component is particularly relevant for tree services that rent equipment. If you rent a flatbed trailer to haul a stump grinder to a job site and your driver is involved in an accident, the hired auto coverage provides liability protection. For physical damage to the rented vehicle, you would need either the rental company's damage waiver or a separate hired auto physical damage endorsement on your commercial auto policy.
Every tree service should carry both a commercial auto policy for its owned fleet and HNOA coverage for the inevitable situations where non-owned vehicles are used for business. The cost of HNOA is trivial compared to the exposure — a single auto accident lawsuit can easily reach $500,000 to $1,000,000 or more in bodily injury claims.
Frequently Asked Questions
Does my general liability policy cover auto accidents?
No. General liability policies contain a standard auto exclusion that excludes liability arising from the ownership, maintenance, or use of autos. You need a separate commercial auto policy for your owned vehicles and HNOA coverage for hired and non-owned vehicles. This is a non-negotiable coverage for tree services.
If an employee uses their personal truck for work, whose insurance pays first?
The employee's personal auto insurance is primary for their own vehicle. Your HNOA coverage is excess — it kicks in above the employee's personal policy limits to protect your company's vicarious liability. This is why you should require employees who use personal vehicles for business to carry minimum personal auto liability limits of $100,000/$300,000.
Do I need commercial auto insurance for trailers?
Trailers you own should be listed on your commercial auto policy, but they typically carry a much lower premium than powered vehicles since they do not have their own propulsion. Equipment trailers, log trailers, and chipper trailers should all be scheduled. When attached to a covered vehicle, the trailer is usually covered automatically.
What about my crew driving company trucks home at night?
Company vehicles driven home by employees are covered under your commercial auto policy as long as the vehicle is scheduled and the driver has permission. However, personal use by employees (weekend errands, etc.) may not be covered depending on your policy terms. Clarify permitted use with your carrier and establish a written vehicle use policy for your crew.