Getting a Hired & Non-Owned Auto (HNOA) quote shouldn't be complicated - but to get accurate pricing and avoid coverage gaps, you need to provide specific information about your delivery operations, driver policies, and contract requirements.
At Anchor Insurance, we've built a streamlined HNOA quoting process for restaurants. This checklist walks you through exactly what underwriters need, what questions to expect, and how to prepare for a smooth quote experience.
Before You Request an HNOA Quote: What to Have Ready
Gathering the right information upfront speeds up the quoting process and ensures accurate pricing. Here's what you'll need:
1. Business Information
- Legal business name: Exactly as registered with your state (e.g., "ABC Restaurant Group, LLC")
- Operating name (DBA): If different from legal name
- Business address: Physical location(s) where delivery operations originate
- Entity type: LLC, corporation, sole proprietorship, partnership
- Years in business: When did you start operations?
- Federal EIN: Employer Identification Number
2. Delivery Operations Details
- Average deliveries per week: Be as accurate as possible - overestimating increases cost, underestimating creates coverage gaps
- Delivery radius: Maximum distance you deliver (in miles)
- Operating hours: When do deliveries occur? (e.g., 11 AM - 9 PM vs. 24/7)
- Delivery method: Employee vehicles, company vehicles, third-party platforms, or a mix?
- Types of deliveries: Standard food delivery, catering, alcohol delivery, supplies/equipment transport
3. Driver Information
- Number of drivers: How many employees use vehicles for business purposes?
- Driver screening policy: Do you verify licenses? Run MVR checks?
- MVRs (Motor Vehicle Records): Most carriers require MVRs for all drivers; be prepared to provide them or authorize carriers to pull them
- Driver age requirements: Do you have a minimum age for drivers (e.g., 21+)?
4. Vehicle Information
- Non-owned vehicles: How many employees use personal vehicles for deliveries?
- Hired vehicles: Do you ever rent or borrow vehicles for catering, events, or temporary needs?
- Frequency of hired vehicle use: Occasional (1-2x/month) or regular (weekly)?
5. Insurance History
- Current HNOA policy (if any): Provide your current declarations page
- Loss runs: Record of insurance claims for the past 5 years (especially auto liability claims)
- Prior coverage limits: What limits did you carry previously?
- Cancellations or non-renewals: Has any carrier cancelled or declined to renew your coverage?
6. Contract and Certificate Requirements
- Landlord requirements: Does your lease require specific auto liability coverage or additional insured status?
- Client/vendor requirements: Do catering clients require certificates of insurance (COIs) with specific limits or endorsements?
- Lender requirements: If you financed company vehicles, what coverage does your lender require?
Key Questions Underwriters Will Ask
Here are the most common questions you'll encounter during the HNOA quoting process, with guidance on how to answer:
"Do you own any vehicles used for business?"
This determines whether you need HNOA, commercial auto, or both.
- If yes: You need commercial auto for owned vehicles and may still need HNOA for non-owned/hired vehicles
- If no: HNOA is the right coverage for employee and rented vehicles
"How do you verify employees' personal auto insurance?"
Underwriters want to know that employees using personal vehicles have active personal auto policies, since HNOA is excess coverage over employees' personal policies.
- Best answer: "We require proof of insurance (declarations page or ID card) annually and keep copies on file."
- Weak answer: "We assume they have insurance." (This increases your risk profile)
"What is your driver screening process?"
Carriers want to see that you're hiring and retaining safe drivers.
- Strong process: Verify valid license, run MVR checks at hire and annually, exclude drivers with DUIs or multiple at-fault accidents
- Weak process: No formal screening (this increases premiums or limits carrier options)
"Do you deliver alcohol?"
Alcohol delivery doesn't directly impact HNOA, but it signals additional liability exposure and helps underwriters assess your overall risk profile.
- If yes: You'll need a separate liquor liability policy
- If no: No impact on HNOA pricing
"Have you had any auto liability claims in the past 5 years?"
Claims history is a major pricing factor. Be honest and provide details:
- Date of loss
- Description of what happened
- Total amount paid (or reserved)
- Whether the claim is open or closed
Withholding claims information can result in coverage being rescinded later.
"What liability limits do you need?"
Common limits for restaurants:
- $500,000: Minimum for low-volume, short-radius delivery
- $1 million: Standard recommendation for most restaurants
- $2 million+: For high-volume, late-night, or long-distance operations
Check your lease and contracts - some require specific minimum limits.
Driver Policy Best Practices to Strengthen Your Quote
Having formal driver policies in place not only reduces your risk but also improves your insurability and pricing. Here's what carriers look for:
1. Written Driver Qualification Policy
Establish minimum standards for drivers:
- Valid driver's license (appropriate class for vehicle type)
- Minimum age (21+ is common for delivery drivers)
- Clean MVR (no DUIs in past 5 years, no more than 2 at-fault accidents in 3 years)
- Proof of personal auto insurance (for non-owned vehicles)
2. Annual MVR Monitoring
Run Motor Vehicle Record checks annually for all drivers. Remove drivers who:
- Receive a DUI or reckless driving conviction
- Accumulate multiple moving violations
- Are involved in multiple at-fault accidents
3. Driver Training Program
Provide new drivers with training on:
- Safe driving practices (defensive driving, distraction avoidance)
- Accident reporting procedures
- Customer interaction and delivery protocols
Document training completion and keep records on file - some carriers offer discounts for formal training programs.
4. Incident Reporting Policy
Require drivers to report all accidents and near-misses immediately, even if no damage occurred. This allows you to:
- Document incidents for insurance claims
- Identify patterns or high-risk drivers
- Provide coaching or retraining
Understanding Certificate of Insurance (COI) Requirements
Many landlords, clients, and vendors require proof of insurance before you can operate. Here's what you need to know about Certificates of Insurance (COIs) for HNOA:
What is a Certificate of Insurance?
A COI is a one-page document that summarizes your insurance coverage. It shows:
- Policy types and limits
- Policy effective dates
- Who is covered (named insured)
- Additional insureds (if applicable)
Common COI Requirements for HNOA
- Minimum liability limits: $1 million per occurrence is most common
- Additional insured status: Landlords or clients may require to be listed as additional insureds on your HNOA policy
- Waiver of subrogation: Some contracts require this endorsement, which prevents your insurer from suing the landlord/client to recover claim costs
- Primary and non-contributory language: Ensures your HNOA pays first if a claim involves the additional insured
How to Request a COI
Once your HNOA policy is bound, your broker (like Anchor) can issue COIs on demand. Provide:
- Name and address of the certificate holder (landlord, client, vendor)
- Any specific endorsements or language required by the contract
- Deadline for delivery
Contract Language to Review Before Quoting HNOA
If your lease or client contracts include insurance requirements, review them carefully before requesting HNOA quotes. Look for:
1. Required Coverage Types
Example: "Tenant shall maintain Hired and Non-Owned Auto Liability coverage with limits of not less than $1,000,000 per occurrence."
Make sure your quote includes the exact coverage types and limits required.
2. Additional Insured Requirements
Example: "Landlord shall be named as an additional insured on all liability policies."
Tell your broker you need an additional insured endorsement and provide the landlord's name and address.
3. Primary and Non-Contributory Language
Example: "Tenant's insurance shall be primary and non-contributory with respect to Landlord's insurance."
This requires a specific endorsement. Confirm with your broker that this language can be added.
4. Waiver of Subrogation
Example: "Tenant waives all rights of recovery against Landlord."
This prevents your insurer from suing the landlord to recover claim costs. Most carriers can add this endorsement for a small fee.
5. Cancellation Notice Requirements
Example: "Tenant shall provide Landlord with 30 days' written notice of cancellation or non-renewal."
Most carriers provide 10 days' notice by default. If your contract requires 30 days, confirm with your broker that this can be accommodated.
What to Expect: The HNOA Quote Process at Anchor Insurance
Step 1: Initial Consultation (15-20 minutes)
We'll ask about your delivery operations, driver policies, and contract requirements. This helps us determine which carriers are the best fit for your risk.
Step 2: Data Collection
We'll request:
- Business information (legal name, address, EIN)
- Delivery details (volume, radius, hours)
- Driver information and MVRs
- Loss runs (claims history)
- Copies of leases or contracts with insurance requirements
Step 3: Market Submission
We submit your application to multiple carriers (typically 3-5 for HNOA). Carriers evaluate your risk and provide quotes.
Step 4: Quote Review and Recommendation
We present quotes from multiple carriers, explaining:
- Coverage limits and exclusions
- Premium differences and why they vary
- Which carrier is the best fit for your operations
Step 5: Bind Coverage
Once you choose a quote, we bind coverage (activate the policy) and issue:
- Policy documents
- Certificates of Insurance (COIs) for landlords/clients
- Any required endorsements
Step 6: Ongoing Support
We handle mid-term changes (adding drivers, adjusting limits), COI requests, claims reporting, and renewal strategy as your business grows.
Common Mistakes to Avoid When Quoting HNOA
1. Underreporting Delivery Volume
If you report 10 deliveries/week but actually do 50, you're underinsured. If a claim occurs, the carrier may adjust your premium retroactively or deny coverage.
2. Not Disclosing Prior Claims
Failing to disclose claims can result in coverage being rescinded. Always provide complete loss run information, even for small claims.
3. Choosing the Cheapest Quote Without Understanding Coverage
The lowest premium isn't always the best value. Make sure the policy includes necessary endorsements (additional insureds, waivers, etc.) and adequate limits.
4. Waiting Until the Last Minute
HNOA quotes typically take 24-48 hours, but complex risks or contract requirements can take longer. Start the process at least 2-3 weeks before you need coverage.
5. Not Reviewing Contract Requirements
If your lease requires $2 million in auto liability and you only purchase $1 million, you're in breach of contract. Review all insurance requirements before quoting.
Frequently Asked Questions
How long does it take to get an HNOA quote?
For straightforward restaurants with clean claims history and standard delivery operations, we can typically provide quotes within 24-48 business hours after receiving all required information (MVRs, loss runs, delivery details). More complex risks or high-volume operations may take 3-5 days.
Do I need to provide MVRs for all drivers, or just full-time drivers?
Most carriers require MVRs for all drivers who will use vehicles for business purposes, regardless of full-time or part-time status. If a driver makes even occasional deliveries, they should be listed and have a clean MVR on file.
What if one of my drivers has a DUI from 4 years ago?
Most carriers exclude drivers with DUIs in the past 5 years. You can either exclude that driver from using vehicles for business or shop specialty carriers who may accept them at a higher premium. The safest approach is to not allow drivers with recent DUIs to make deliveries.
Can I add HNOA to my existing BOP, or does it need to be a separate policy?
It depends on your carrier. Some insurers allow HNOA to be added as an endorsement to your Business Owners Policy (BOP), which is often cheaper and more convenient. Others require a standalone HNOA policy. We'll help you determine the most cost-effective structure based on your current coverage.
What happens if my delivery volume increases after I bind coverage?
You should notify your broker immediately if your delivery volume, radius, or hours change significantly. Most HNOA policies are auditable, meaning the carrier can adjust your premium if your actual exposure differs from what was quoted. It's better to proactively update your policy than face a large retroactive premium adjustment or coverage gap.
How do I know if my HNOA policy meets my landlord's insurance requirements?
Provide a copy of your lease's insurance requirements section to your broker. We'll review it and ensure your HNOA policy includes the required limits, additional insured endorsements, waivers, and any specific language the landlord requires. Once the policy is bound, we'll issue a Certificate of Insurance (COI) that demonstrates compliance.