Hired Auto & Non-Owned Auto coverage is typically added as an endorsement on a General Liability policy. When there are no vehicles titled in the company name this coverage will meet the contract requirement for Commercial Auto coverage.

Hired Auto coverage replaces or augments the liability coverage offered by auto rental agencies. However, it does not cover physical damage to the vehicle that is rented. You should still obtain physical damage coverage from the rental agency. In addition, it is important to remember that the liability coverage provided is designed to protect the company, not the employee driving the rented vehicle. The employee is still personally liable for injuries or property damage to third parties in an accident, just as if he or she were driving a personal vehicle. This coverage is for the company only and is "excess" over the personal auto liability coverage carried by the driver of the vehicle.

Non-Owned Auto coverage protects your company in the event that your company is sued as a result of an auto accident that you or one of your employees has in a personal vehicle while on company business. This coverage will not protect you or your employee personally, only your personal auto policy will do that. As is true with Hired Auto, this coverage is for the company only and is "excess" over the personal auto liability coverage carried by the driver of the vehicle.

Auto liability coverage may be described in your contract in this way:
"Contractor shall carry bodily injury, property damage, and automobile contractual liability coverage for owned, hired and non-owned autos with a combined single limit of liability for each accident of not less than $1,000,000."