Insurance Topic

Hired and Non-Owned Auto Coverage

A defined liability coverage addressing bodily injury and property damage exposures arising from the use of vehicles not owned by the named insured.

Definition

Hired and non-owned auto coverage is a liability insurance provision that applies when an insured is legally responsible for damages caused by the operation of vehicles the insured does not own, including vehicles rented, leased, or used in connection with the insured’s operations.

Structural Components

  • Hired auto liability, addressing vehicles rented or leased by the insured.
  • Non-owned auto liability, addressing vehicles owned by employees or third parties but used on behalf of the insured.
  • Liability trigger based on the insured’s legal responsibility rather than vehicle ownership.
  • Integration as an endorsement or coverage part within broader liability policies.

Parameters & Conditions

  • Applies only to liability exposures, not physical damage to the vehicle itself.
  • Coverage is contingent on use of the vehicle in connection with the insured’s operations.
  • Limits and conditions follow the governing liability policy or endorsement terms.
  • Primary versus excess application may depend on other applicable insurance.

Topic Relationships

Exceptions, Limitations & Boundaries

  • Does not cover physical damage to hired or non-owned vehicles.
  • Excludes vehicles owned by the named insured.
  • Subject to exclusions related to unauthorized use or non-business activities.
  • May be excess over other valid and collectible insurance.

Hired and Non-Owned Auto Coverage: Definitional FAQ

Is hired and non-owned auto coverage the same as commercial auto insurance?
No, it addresses liability arising from non-owned vehicles, whereas commercial auto insurance generally applies to vehicles owned by the insured.
Does this coverage insure the vehicle itself?
No, it applies only to liability exposures and does not insure physical damage to the vehicle.
When is non-owned auto liability triggered?
It is triggered when an insured is legally liable for damages arising from use of a non-owned vehicle in connection with the insured’s operations.
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