How do Hired Auto and Non-Owned Auto endorsements modify CGL liability?

• A. They reduce exposure for liability from owned autos.
• B. They extend coverage for liability arising from use of autos not owned by the insured, typically when the primary auto policy does not apply.
• C. They eliminate the need for auto liability coverage.
• D. They apply only to medical payments.

Answer: (B)

The main idea is that these endorsements expand the CGL’s liability coverage to cover auto-related operations where the insured does not own the vehicle. When a business uses vehicles that it doesn’t own—such as rented trucks or an employee’s car for a job—the CGL by itself often wouldn’t respond to liability from accidents involving those vehicles. Hired Auto coverage kicks in for vehicles the insured rents or borrows, while Non-Owned Auto coverage handles liability arising from using autos not owned by the insured (like an employee’s personal car used for business). Together, they fill gaps so the business has liability protection for those scenarios, even when there isn’t a primary auto policy to respond.

They don’t address liability from owned autos, which is typically handled by a separate auto liability policy. They also don’t replace auto coverage or focus on medical payments; their purpose is to extend liability coverage under the CGL for non-owned or hired vehicles used in the insured’s business.