Written by Justin Goodman, CIC, CISC, CLCS, CEO and Co-Founder, Total CSR Published: October 8, 2026 · Last reviewed: October 8, 2026
In plain language: Hired Auto Coverage protects a business when it rents, leases, or borrows a vehicle for work purposes and that vehicle causes an accident. A contractor who rents a pickup truck for a job site and gets into a wreck relies on this coverage, not personal auto insurance, to pay for the damage.
Technical definition: Hired Auto Coverage, triggered by Symbol 8 on the Business Auto Coverage Form (CA 00 01), extends liability protection to autos the named insured hires, rents, borrows, or leases but does not own, lease long-term, or operate under an employee’s personal policy.
Hired Auto Coverage at a Glance
| Attribute | Detail |
|---|---|
| Also known as | Hired Autos Liability, Symbol 8 Coverage |
| Category | Commercial auto liability coverage extension |
| Lines of business | Commercial Auto, Business Auto Coverage Form |
| Industries most affected | Construction, transportation, hospitality, real estate, professional services |
| Related forms or endorsements | CA 00 01 (Business Auto Coverage Form), CA 20 01 (Liability Coverage), CA 20 36 (Lessor Additional Insured and Loss Payee), CA 20 48 (Hired Auto Physical Damage) |
| Who bears the risk | The business renting, leasing, or borrowing the vehicle for its operations |
| Common solution | Symbol 8 selection on the Business Auto Coverage Form, paired with Hired Auto Physical Damage endorsement when needed |
| Also interacts with | Non-Owned Auto Coverage, personal auto policies, rental company liability waivers |
Key Takeaways
- Hired Auto Coverage pays liability claims when a business causes an accident in a vehicle it rents, leases, or borrows rather than owns.
- Agencies must confirm Symbol 8 appears on the declarations page because many business auto policies default to owned-vehicle symbols only, leaving a rental exposure uninsured.
- A frequent misunderstanding is assuming Hired Auto Coverage includes physical damage to the rented vehicle itself; standard Hired Auto Coverage is liability-only unless Hired Auto Physical Damage is added separately.
- Agencies should pair Hired Auto Coverage with Non-Owned Auto Coverage whenever employees use personal or rented vehicles for company business, since the two address different ownership scenarios.
What Is Hired Auto Coverage in Insurance?
Hired Auto Coverage is a liability extension within the Business Auto Coverage Form that responds when a business causes bodily injury or property damage using a vehicle it does not own. The provision exists because standard owned-auto liability coverage only follows vehicles titled to the named insured. Without Symbol 8, a company that rents a van for a trade show or a moving truck for a job has no commercial liability protection in place if that vehicle causes a crash.
Carriers built this coverage to close a predictable gap in business operations. Companies frequently need short-term or occasional vehicles: a landscaping firm renting a trailer-towing truck, a caterer borrowing a refrigerated van, or a contractor leasing equipment haulers for a single project. Hired Auto Coverage transfers that liability exposure to the commercial policy instead of leaving it to the rental company’s minimal liability waiver or the driver’s personal auto policy, which typically excludes business use.
Consider a roofing company that rents a flatbed truck for a week to haul materials between job sites. An employee driving the rented flatbed rear-ends another vehicle at a stoplight, injuring the other driver. Because the roofing company’s Business Auto Coverage Form includes Symbol 8, the Hired Auto Coverage responds to the third-party bodily injury claim, defending the company and paying damages up to the policy limit.
How Does Hired Auto Coverage Work?
- The rental or borrowing arrangement. The business rents, leases, or borrows a vehicle it does not own to conduct company operations, such as hauling equipment or transporting staff.
- The accident. An authorized driver operating the hired vehicle for business purposes causes bodily injury or property damage to a third party.
- The claim. The injured party or their insurer files a claim or lawsuit against the business, naming the company as the responsible party for the accident.
- The coverage trigger. The Business Auto Coverage Form responds under Symbol 8 because the vehicle meets the policy’s definition of a hired auto and the use falls within business operations.
- The resolution. The carrier investigates, defends the business if needed, and pays covered damages up to the policy limit, subject to any applicable deductible for Hired Auto Physical Damage if that endorsement is attached.
Real Claim Examples Involving Hired Auto Coverage
Rental van causes a multi-vehicle pileup
A catering company rented a refrigerated van for a large event. The driver, an employee working under the company’s direction, lost control on a wet highway and caused a four-car collision. The injured drivers filed claims exceeding $300,000 combined. Because the catering company’s Business Auto Coverage Form carried Symbol 8, Hired Auto Coverage paid the liability claims and funded the legal defense, protecting the business from a direct financial hit.
Construction equipment hauler damages a parked fleet
A general contractor leased a heavy-duty truck for two months to move equipment between sites. During a delivery, the truck’s driver misjudged clearance and sideswiped three parked delivery vehicles outside a warehouse. The property owner pursued damages for the vehicles and lost income during repairs. Hired Auto Coverage responded because the lease qualified as a hired auto arrangement and the use was clearly business-related, though the contractor still had to cover physical damage to the leased truck itself separately.
Rental car used for a sales trip hits a pedestrian
A regional sales manager rented a sedan for a multi-city client visit and struck a pedestrian in a crosswalk while making a turn. The pedestrian suffered serious injuries and filed a significant liability claim. The company’s commercial auto policy with Hired Auto Coverage responded ahead of the manager’s personal auto policy, since the rental was clearly tied to business travel and fell squarely within the hired auto definition.
Hired Auto Coverage vs. Non-Owned Auto Coverage: What Is the Difference?
Hired Auto Coverage and Non-Owned Auto Coverage frequently travel together on the same policy, but they address separate ownership situations and agents often confuse one for the other. Hired Auto Coverage applies to vehicles the business itself rents, leases, or borrows, while Non-Owned Auto Coverage applies to vehicles employees own personally and use for company business.
| Comparison area | Hired Auto Coverage | Non-Owned Auto Coverage |
|---|---|---|
| Primary use case | Business rents, leases, or borrows a vehicle | Employee uses a personal vehicle for company business |
| Coverage / concept type | Liability extension, Symbol 8 | Liability extension, Symbol 9 |
| Typical exclusions | Physical damage to the hired vehicle unless separately endorsed | Physical damage to the employee’s personal vehicle |
| Who is most affected by errors | Businesses that regularly rent trucks, vans, or equipment | Businesses that reimburse mileage or allow personal vehicle use |
| Common mistakes | Assuming physical damage is automatically included | Assuming the employee’s personal auto policy will respond primarily |
What Are the Most Common Mistakes With Hired Auto Coverage?
- Agencies sometimes quote a Business Auto Coverage Form without Symbol 8, leaving the client uninsured for a rental vehicle used on the job, a gap that surfaces only after a claim denial.
- Clients frequently assume Hired Auto Coverage pays for damage to the rented vehicle itself, when standard Hired Auto Coverage is liability-only and requires the Hired Auto Physical Damage endorsement for collision or comprehensive protection.
- Agents occasionally overlook long-term leases that function more like ownership, which can shift the exposure outside the hired auto definition and require different coverage treatment entirely.
- Businesses sometimes decline rental company collision damage waivers believing their commercial policy fully covers the vehicle, then discover their Hired Auto Physical Damage limit or deductible leaves a meaningful gap.
- Agencies fail to verify that drivers using hired vehicles are listed or otherwise qualified under the policy’s driver requirements, which can complicate a claim even when Symbol 8 is present.
- Account managers sometimes treat Hired Auto Coverage and Non-Owned Auto Coverage as interchangeable, recommending one when the client’s actual exposure calls for both.
How to Explain Hired Auto Coverage to a Client
Explaining Hired Auto Coverage to a personal lines client
Hired Auto Coverage generally does not apply to personal lines policies, so a CSR fielding this question should clarify that this coverage exists on business auto policies, not personal auto policies. If the client occasionally rents a car for personal travel, their personal auto policy or rental company coverage handles that situation instead. This term becomes relevant only if the client runs a business that rents vehicles for work.
Explaining Hired Auto Coverage to a small business owner
Hired Auto Coverage means that if your business rents a truck, van, or trailer for a job and that vehicle gets into an accident, your commercial auto policy can step in to pay for injuries or damage to other people. Without this coverage on your policy, a rental accident could become a direct financial hit to your business. We make sure your policy includes this protection any time you rent or borrow vehicles for work.
Explaining Hired Auto Coverage to a CFO or risk manager
Hired Auto Coverage addresses third-party liability arising from vehicles the organization rents, leases, or borrows rather than owns, closing a gap that owned-auto symbols alone will not cover. Because standard Hired Auto Coverage excludes physical damage to the hired vehicle itself, we recommend reviewing whether Hired Auto Physical Damage or rental company collision waivers better fit your risk transfer strategy. This decision should align with how frequently your operations rely on rented or leased equipment and vehicles.
Frequently Asked Questions About Hired Auto Coverage
Does Hired Auto Coverage pay for damage to the rental vehicle itself?
Standard Hired Auto Coverage is liability-only and does not pay for damage to the rented or borrowed vehicle. Businesses that want that protection need the Hired Auto Physical Damage endorsement, CA 20 48, or they need to rely on the rental company’s collision damage waiver. Many businesses carry both to avoid gaps depending on deductibles and limits.
Does Hired Auto Coverage apply to long-term leased vehicles?
Hired Auto Coverage typically applies to short-term rentals and borrowed vehicles rather than vehicles the business leases long-term as a substitute for ownership. Long-term leased vehicles are often scheduled and insured similarly to owned autos under Symbol 1 or Symbol 7. Agencies should review the specific lease terms and policy language to confirm proper classification.
Is Hired Auto Coverage the same as rental car insurance?
Hired Auto Coverage is not the same as the optional insurance a rental counter sells at checkout, though they can overlap in protection. Hired Auto Coverage is a business liability extension built into the commercial auto policy, while rental counter products are typically standalone waivers or supplemental policies. Businesses should compare both to decide which offers better value and avoid paying for duplicate protection.
Do employees need to be listed drivers for Hired Auto Coverage to apply?
Hired Auto Coverage generally applies based on business use of the vehicle rather than requiring every driver to be individually listed, but insurers often expect drivers to be authorized and qualified under company policy. Total CSR’s training work with agency teams shows that CSRs who skip verifying driver qualification language during policy review create unnecessary claim friction later. Confirming this detail during the application process prevents disputes at claim time.
What triggers Hired Auto Coverage versus Non-Owned Auto Coverage?
Hired Auto Coverage triggers when the business itself rents, leases, or borrows the vehicle involved in a loss. Non-Owned Auto Coverage triggers when an employee uses a personally owned vehicle for business purposes. A single accident involving an employee driving their own car to a client meeting would fall under Non-Owned Auto Coverage, not Hired Auto Coverage.
Can a sole proprietor add Hired Auto Coverage without a commercial auto policy?
Hired Auto Coverage is a component of the Business Auto Coverage Form, so a sole proprietor generally needs a commercial auto policy in place to add it. Some business owner’s policies bundle limited hired and non-owned auto liability without a full commercial auto policy, but limits and terms vary significantly. An agent should review the specific policy language before assuming any bundled protection is adequate.
Related Insurance Terms
- Non-Owned Auto Coverage: liability protection for vehicles employees own personally but use for company business, commonly paired with Hired Auto Coverage on the same policy.
- Business Auto Coverage Form: the ISO form, CA 00 01, that establishes commercial auto liability and physical damage coverage, including the symbols that activate Hired Auto Coverage.
- Symbol 1: the Business Auto Coverage Form designation for any auto, often used when a business wants the broadest possible coverage across owned, hired, and non-owned vehicles.
- Hired Auto Physical Damage: an endorsement, CA 20 48, that adds collision and comprehensive protection for rented or borrowed vehicles, filling the gap left by standard liability-only Hired Auto Coverage.
- Contingent Liability: a broader risk transfer concept describing a business’s exposure for the actions of others, which relates to how Hired Auto Coverage shifts rental vehicle risk onto the commercial policy.
- Additional Insured: a status sometimes requested by rental or leasing companies on a business auto policy, which interacts with Hired Auto Coverage when contracts require proof of liability protection.
Sources and References
About the Author
Justin Goodman, CIC, CCIP, CISC, CLCS, CRIS, PCIA, QCLS, MFHR CEO and Co-Founder, Total CSR, Inc.
Justin Goodman is a third-generation insurance broker with over two decades in agency operations. He has trained more than 100,000 CSRs, account managers, and producers in commercial and personal lines coverage, from workers’ compensation to construction risk. He was named 2024 Insurance Journal Agent of the Year and one of the nation’s top five construction insurance experts by Risk & Insurance. He is the author of Retain, which applies cognitive science research on memory and knowledge transfer to insurance training, and speaks nationally on how agencies build durable technical expertise in their teams.