Hired & Non-Owned Automobile Liability coverage provides liability insurance protection for the insureds against bodily injury and property damage claims brought against the insureds by third parties or members of the public when vehicles that are not owned by the insured, but are used for official purposes of the insured, are involved in an accident.
For example, a vehicle owned by an employee is used for company business such as when a chapter cook uses his/her car to drive to the store to buy food. The cook is involved in a car accident while running the errand, and the injured party sues the chapter. This would be a Non-Owned automobile claim because the car involved in the accident was not owned by the chapter, but was being used for business purposes and caused property damage to another vehicle and the injured party sued the chapter. The situation would also apply if the cook took a taxi (this would be considered a hired automobile) to travel to the store and the same type of claim occurred. This would be an example of a Hired Automobile claim.
Understanding This Coverage
This coverage does not provide or replace anyone’s personal automobile insurance.
Hired Auto Liability: The insurance coverage generally applies to bodily injury or property damage claims arising out of the use of a “Hired Auto” by an insured or an insured’s employees, but only where the “Hired Auto” is used in an insured’s business.
Non-Owned Auto Liability: The insurance coverage generally applies to bodily injury or property damage claims arising out of the use of a “Non-Owned Auto,” but only where the “Non-Owned Auto” is used in an insured’s business.
Risk Management Recommendations:
This basic information has been prepared as information only. The actual insurance policies are subject to definitions, duties, exclusions, limitations, and various other terms and conditions. This information does not amend, extend, or alter the coverage afforded by the actual insurance policies.
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