Hired Auto Coverage
This policy is basically targeted towards the automobiles, which are rented or borrowed for an operation of your business. Hired auto coverage liability covers bodily injury and/or property damage caused by a vehicle you hire. The policy also includes damage caused by vehicles not owned directly by your business such as vehicles owned by others or the ones owned by your employees.
Usually this policy does not pay for any damage to the vehicle itself because that falls under owner’s insurance. Although this option can be made available.
A wise businessman would keep this in mind such that a situation may arise where this policy is needed. No matter the kind of business; a rental situation for a vehicle or just the need of one to run errands always comes up.
- You might need to send an errand boy to pick up lunch
- You might need to impress a visiting client by sending a limo to have him picked up.
- While on a business trip, you might need to rent a car.
- You might also need coverage to kick in if there is an auto accident and you are sued.
You do not necessarily have to own a business vehicle to avail this coverage. In most situations, coverage can be added to your general liability policy.
There is an advantage to occasionally renting vehicles. Having hired and non-owned auto liability insurance may save you money by avoiding having to buy the liability coverage from the rental company.