What is the purpose of hired auto coverage?

Hired auto coverage is designed to protect businesses against liabilities that may arise from vehicles that they rent or lease. This coverage is particularly focused on incidents that involve vehicles rented for less than 12 months, making it essential for businesses that utilize rental vehicles temporarily for operational purposes.

This type of coverage typically includes liability associated with bodily injury and property damage that occurs while the rented vehicle is being used for business activities. It ensures that businesses are financially protected in the event of an accident or incident that leads to claims arising from the use of these rented vehicles.

The focus on rentals of less than 12 months distinguishes this coverage from other types, such as standard auto liability insurance, which might not extend to rentals beyond that time frame or may not cover rentals at all. By having hired auto coverage, businesses can mitigate their risks and comply with insurance requirements when they rely on rented vehicles for business operations.