What it does
BP 04 04 adds two coverages, each applying only when a premium is shown:
- Hired Auto Liability – bodily injury or property damage arising out of the maintenance or use of a "hired auto" by the named insured or its employees in the course of business.
- Non-Owned Auto Liability – bodily injury or property damage arising out of the use of any "non-owned auto" in the insured's business by any person.
ISO describes the coverage as excess liability coverage.
Key provisions
- For this coverage most Section II exclusions are replaced with auto-type exclusions, including employee injury and damage to property owned, transported, rented or in the insured's care.
- Who Is An Insured is rewritten: the named insured; others using a hired auto with permission; for non-owned autos, partners and executive officers, and employees only while the auto is used in the business. Employees are not covered for injury to co-employees.
- There is no physical damage coverage for rented or employee vehicles.
Who needs it
Almost every BOP account with employees: restaurants with delivery drivers in their own cars, contractors and service firms whose staff drive to jobs, offices whose employees run errands or rent cars on trips.
Quoting and selling notes
- Ask whether the business owns or leases any vehicles; owned autos need a business auto policy, and carriers often require that the business have no owned-auto exposure.
- Delivery operations draw underwriting questions or exclusions; confirm before binding.
- New York, New Jersey, Washington, Wisconsin and California use state versions.
Related forms
BP 16 19 Exclusion – Hired Auto Liability; BP 00 03.
