Many bar and nightclub owners assume auto liability doesn't apply to them. They may not run delivery vans or own a fleet, and the closest thing to a company car might be a manager's personal sedan parked out back. That assumption creates a gap in insurance for bars and nightclubs. Coverage written without hired and non-owned auto liability leaves a venue exposed when someone drives their own car for business tasks, whether that's making a bank deposit, running a supply run, or picking up rented equipment for a show.
Hired and non-owned auto liability (HNOA) covers two distinct situations. "Hired" applies to vehicles that the business rents, leases, or borrows for a specific purpose, such as a van rented to haul extra seating for a big event. "Non-owned" applies to an employee's own car when they use it for a work errand, such as a manager driving to the bank with the night's deposit.
Either way, HNOA is liability coverage, not physical damage coverage. It responds when someone gets hurt or their property gets damaged, not when the vehicle itself needs repairs. Most carriers add it as an endorsement to a general liability policy rather than selling it as a standalone product, which is partly why so many bar and nightclub owners don't realize they're missing it.
RMS Hospitality Group's program includes hired and non-owned auto liability coverage up to $1 million, giving agents a concrete number to check a client's current program against.
The exposure doesn’t always look like "driving for work." A manager runs the deposit to the bank after close. A bartender picks up mixers or last-minute liquor supplies when a delivery falls through. An owner sends a staff member to grab rented AV equipment for a private event. The employee may be using their own car, but the trip still creates an auto exposure for the business — one that can be easy to overlook until there’s a claim.
If an employee is involved in an accident while driving their own vehicle on a work-related errand, the employee's own auto policy is usually the first line of coverage. However, the protection it provides can be limited, and the available limits may not be enough to cover a serious injury claim. Personal auto policies vary in how they treat business use, and some exclude or restrict coverage for certain work-related driving. HNOA closes that gap between what the employee's policy covers and what the claim costs..
A standard general liability policy accounts for what could happen on the premises: a slip on a wet floor, an altercation near the bar, or a fixture falling on a patron. It isn't designed to respond to an accident that happens off-site in a vehicle, even if the person driving was running a business errand at the time.
At renewal, agents should ask every bar and nightclub client: Does anyone, including the owner, ever drive their own car for something the business needs? If the answer is yes, even occasionally, check whether HNOA is already part of the program or still needs to be added.
Work-related driving can be easy to overlook in the day-to-day operation of a bar or nightclub. A bank run or supply pickup may seem routine, but without the right coverage in place, an accident can leave the business facing a liability claim.
Contact RMS Hospitality Group to review whether a client's insurance for bars and nightclubs already accounts for hired and non-owned auto liability, or whether it's a gap worth closing before the next renewal.
No. Standard general liability policies address incidents that happen on the business's premises. Accidents that occur off-site in a vehicle, even during a work errand, fall outside that coverage and require a separate hired and non-owned auto liability endorsement.
Hired auto coverage applies to vehicles the business rents, leases, or borrows. Non-owned auto coverage applies to an employee's personal vehicle when it's used for a business purpose. Both are usually bundled together under the same HNOA endorsement.
Yes, if any employee or owner ever drives a personal vehicle for a business task, such as making a bank deposit or picking up supplies. Not owning a company vehicle doesn't remove the exposure, since the risk comes from the errand, not the type of vehicle.
It's typically added as an endorsement to an existing general liability policy rather than sold as a standalone policy. However, some carriers offer it separately depending on the venue's needs.
At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom-tailored solutions to meet any venue’s specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.
