Hired auto insurance coverage is available to business owners who are using a rented vehicle for commercial purposes. It also covers an employee who is using his or her own vehicle for business purposes, such as in a situation where the employee is using a personal vehicle to pick up or deliver items or to visit a client.
If these scenarios occur in a tort state for car insurance purposes, the occupants of the other vehicle have the right to sue for collect damages for personal injuries and economic loss incurred as a result of the accident. If the at-fault driver was engaged in business activities at the time of the accident, the injured person will sue the company for compensation.
A standard commercial auto insurance policy should include hired auto insurance coverage. A business owner who has a policy in place can examine the documents received from the company to confirm that it is in place and how much protection is available. The limit for hired auto insurance will likely be the same as for third party liability protection.
Insurance companies offer a range of coverage limits to their customers for liability protection, including hired auto insurance. The right level of coverage will depend on the type of business and the amount of assets that require protection. A commercial insurance provider can recommend the right level of coverage for a particular business owner’s needs.