Primary Non-Owned Auto (PNOA)

Primary Non-Owned Auto (PNOA) is a new product designed to address the needs of businesses in the health and human services industry. PNOA auto insurance purchased by a business or non-profit organization providing primary auto liability and optional physical damage for employees while driving their personal vehicles for business purposes.

Fundamental Underwriters will officially begin offering PNOA on July 1, 2021, in the following 14 states:  Alabama, Arkansas, Colorado, Georgia, Illinois, Indiana, Iowa, Missouri, Nebraska, Ohio, Oklahoma, Tennessee, Texas and Virginia.

Benefits of PNOA include:

Better Protection for Staff

  • Addresses potential coverage gap between employee’s personal auto policy and employer’s commercial lines non-owned auto coverage.

Improved Risk Profile for the Insured Organization

  • Knowing risk is mitigated with selected coverages and limits provides comfort to the employer.

Streamlined, Consistent Management of Employee Vehicle Operation

  • Employer experiences reduced administrative costs and stress of monitoring adherence to insurance requirements.

Recruiting and Retention Tool

  • Employee is not required to purchase additional personal auto insurance limits to satisfy the employer’s requirements.
  • Employee does not need to classify a personal vehicle as “business use,” which may be considered a less desirable risk by their insurer.
  • Employees have peace of mind knowing their employer will cover accidents occurring on the job.




Frequently Asked Questions

Q:  Why are the only limits $300,000 or $500,000?

A: The PNOA limits are meant to mimic those normally purchased by an employee for themselves. It is a distinct exposure from that of the employer’s fleet and hired/non-owned exposure.


Q: Is PNOA’s physical damage the same as that purchased on a personal auto policy?

A: Not exactly. PNOA’s physical damage coverage provides coverage for collision or overturn of the vehicle, including animal collisions. The intent is to cover damage that occurs to the vehicle while being driven. PNOA does not provide coverage for other comprehensive perils (e.g., fire, hail, theft, vandalism).  The employee’s personal policy retains coverage for those causes of loss.


Q: Why not provide physical damage coverage on PNOA regardless of what the employee purchases personally?

A: We know in our industry that drivers who do not insure their vehicles for physical damage are less likely to get the damage repaired. Thus, we did not want to tempt someone to turn in such damage under PNOA when they do not invest in the same benefit personally.


Q: Not all of our client’s staff or volunteers turn in mileage for reimbursement.  Will those team members still be covered?

A:  PNOA coverage is designed to provide protection for those driving covered autos on behalf of the insured business, so reimbursement is not a factor in determining coverage. For accuracy and fairness in premium development, a purchaser of PNOA will need to establish a means of tracking all work-related mileage driven by employees or volunteers. It is the choice of the insured whether or not to reimburse mileage.


Q: What does PNOA cost?

A: Rates vary by state and the individual territories within them. The only way to discover the actual cost is to submit an application with accurate location data to create a valid quote.


Q: Is PNOA an auditable policy?

A: Yes, at the end of a policy period, the insured will be asked to provide actual mileage for the policy period that has just ended. Premium will be adjusted accordingly.


Q: Why is PNOA not available in all of thestates that AF Group writes workers’ compensation?

A: Not all states will allow non-admitted commercial auto policies. We are working on ways to bring the coverage to more states.

Interested in learning more about PNOA?

Please contact us here:


View a recorded PNOA webinar session:

PNOA Webinar