Which coverage is required for a commercial auto insured that rents or borrows vehicles from others?

Hired Auto coverage is essential for a commercial auto insured that rents or borrows vehicles because it provides liability coverage for vehicles that are not owned by the insured but are used in the course of business operations. In essence, this coverage ensures that if the insured is involved in an accident while driving a rented or borrowed vehicle, the policy will cover the associated liabilities, including bodily injury and property damage to third parties.

This coverage is particularly important in commercial settings where businesses often need to utilize vehicles that they do not own, but still require protection against potential legal and financial obligations arising from their use. Without Hired Auto coverage, the business would be exposed to significant risks in scenarios where they might be held liable for accidents occurring in vehicles that they do not own.

Other types of coverage listed, such as Underinsured Motorist coverage, Commercial General Liability coverage, and Property Damage coverage, may serve important roles in a comprehensive insurance portfolio but do not specifically address the risks associated with using rented or borrowed vehicles in a commercial context.