In the context of a business auto policy, what distinguishes hired autos from non-owned autos?

In the context of a business auto policy, hired autos refer specifically to vehicles that a business rents or leases for its operations, such as a rental car. This classification is important because it protects the business against liabilities incurred while using these vehicles, which are not owned by the business. Non-owned autos, on the other hand, pertain to vehicles that are not owned by the business but are used by employees for business purposes, such as a personal vehicle or an employee's pickup truck when used for work-related tasks.

The distinction between hired and non-owned autos is essential for insurance coverage, as each category may have different coverage requirements and limits. Hired autos typically have coverage under the rental agreement, while non-owned autos may be covered under the business's liability policy when used in the course of business. Understanding this difference can help businesses ensure they have the appropriate auto insurance coverage for all types of vehicles used in their operations.