Hired auto
Commercial coverage for liability when employees rent or lease vehicles for business.
Plain definition
Hired auto liability extends your commercial auto liability to vehicles you rent, hire, or borrow for business purposes. It does not automatically cover physical damage to the rented vehicle—that may need hired auto physical damage or the rental company’s collision waiver.
Why it matters
Employees renting trucks for deliveries create liability if they injure someone; personal auto and credit card CDW may not cover business use.
Example
Your staff rents a van for a trade show and rear-ends another car. Hired auto liability may pay third-party damages within commercial auto limits.
Common misunderstanding
Hired auto is not personal rental car coverage on a consumer auto policy when the trip is for employer business.
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