The business auto policy extends coverage to particular autos based on a system of symbols (numbers) that are shown on your declarations page. These symbols can vary by policy depending on the agreed upon coverage. Unlike the personal auto policy that provides very broad coverage, the definition of a covered auto in a business auto policy can be rather narrow depending on the symbol or symbols used. The policy is designed this way because businesses generally have varying needs for coverage and don't want to pay for coverage they perceive they will not use.
Back to hired auto coverage... once the owned or long-term leased autos are insured and listed on the policy, coverage for other extensions of auto coverage must be carefully considered. One of those extensions is hired auto coverage. Hired autos are those that are hired, rented or borrowed. However, this coverage extension does not apply to autos leased, hired, rented or borrowed from any of the named insured's employees, partners, owners or members of their households.
In most cases, this coverage is fairly inexpensive and if there is the slightest chance you might rent or borrow a vehicle, you might want to consider adding hired auto coverage to your business auto policy.
Without exception, your business needs are subject to constant change. If you are unsure if you have this coverage, feel free to call us so we can advise you properly.