What type of vehicle is a rented automobile classified as under the business auto policy?

A rented automobile is classified as hired under a business auto policy because it is a vehicle that a business does not own but has temporarily acquired for its use, typically through a rental agreement. The classification of a vehicle as hired specifically addresses those vehicles that are leased or rented for business purposes, distinguishing them from owned vehicles, which are those that the business has purchased or financed.

In the context of a business auto policy, understanding the difference between hired and non-owned vehicles is essential. Hired vehicles are those that are secured for short-term use, while non-owned vehicles refer to those that employees might use in the course of their work but that are owned by someone other than the business. The hired classification is crucial because it allows businesses to obtain coverage for liabilities and damages incurred while using rented vehicles in the course of business operations.