What does the hired auto and nonowned auto liability endorsement cover?

What does the hired auto and nonowned auto liability endorsement cover?

• A. Bodily injury and property damage liability arising from hired and nonowned autos.
• B. Only liability for owned autos.
• C. Medical expenses arising from auto accidents.
• D. Theft of vehicles.

Answer: (A)

The main idea is that this endorsement extends liability protection to vehicles you don’t own but use in your business, such as rented or employee-owned vehicles used for work. It covers the insured’s responsibility for bodily injury and property damage caused by those hired or nonowned vehicles. In other words, if a rental car or an employee’s personal car used for business causes an accident, this endorsement helps pay the liability claims for injuries or property damage. It does not apply to owned vehicles, so owned autos are covered by the standard auto liability on the policy. It also doesn’t cover medical expenses (those would come from medical payments or PIP), nor does it cover theft of vehicles (which would be handled by separate property or theft coverage).

The main idea is that this endorsement extends liability protection to vehicles you don’t own but use in your business, such as rented or employee-owned vehicles used for work. It covers the insured’s responsibility for bodily injury and property damage caused by those hired or nonowned vehicles. In other words, if a rental car or an employee’s personal car used for business causes an accident, this endorsement helps pay the liability claims for injuries or property damage.

It does not apply to owned vehicles, so owned autos are covered by the standard auto liability on the policy. It also doesn’t cover medical expenses (those would come from medical payments or PIP), nor does it cover theft of vehicles (which would be handled by separate property or theft coverage).