What is a hired auto in the context of commercial auto insurance?

A hired auto, in the context of commercial auto insurance, refers specifically to vehicles that a business organization or sole proprietor leases or borrows for business purposes. This definition encompasses any vehicle that the business does not own but is utilized for its operations, allowing the business to have the necessary flexibility to meet its transportation needs without the burden of ownership.

The significance of understanding hired autos lies in how they are treated under commercial auto insurance policies. When a business rents or borrows a vehicle, it generally needs coverage specifically designed to address liabilities that may arise from the use of that vehicle in a business context. This is often outlined in a garage policy or under hired auto coverage within a commercial auto policy, which specifically protects the business against exposure to claims arising from the rental or borrowed vehicles.

This unique category of auto insurance is crucial for businesses that may not own all the vehicles they use but still require appropriate coverage to protect against incidents that could occur while utilizing these hired autos.

In contrast, the other options refer to either vehicles owned by employees for business use or those belonging to family members, which do not fall under the standard definition of a hired auto in commercial contexts. As such, these do not align with the coverage that specifically addresses the liabilities associated with leased or