Hired and Non-Owned Auto coverages are available as an endorsement to a Commercial Auto Policy or to a BusinessOwners Package policy if there are no autos owned in the business name. There are two types of Hired & Non-Owned Coverages:
Hired & Non-Owned Auto Liability: is the most prevalent which provides auto liability only coverage for the use of a vehicle for business purposes that is not owned in the name of the business. The vehicle may be a personal vehicle, a borrowed vehicle or a rented vehicle. This liability provides protection for the business entity in the event of an at-fault accident or a rendering of negligence and the resultant liability coverges. This is an endorsement added to either the Commercial Auto Policy or to a Business Owners Package Policy.
Hired & Non-Owned Physical Damage: this is the physical damage portion of Hired & Non-Owned Auto Coverages. This provides comprehensive and collision coverages to the use of a vehicle that is being used for business purposes but it not registered in the name of the business, such as a Rental Car. This coverage is generally written for a stated maximum amount.