Georgia Property & Casualty Practice Exam

What type of vehicles does the Non-owned Autos coverage apply to under a business auto policy?

1. A.) Vehicles owned by the business only

2. B.) Vehicles driven by employees for personal use

3. C.) Vehicles rented or hired for business trips

4. D.) Vehicles not owned by the insured but used for business purposes

The correct answer is: D.) Vehicles not owned by the insured but used for business purposes

The Non-owned Autos coverage under a business auto policy is specifically designed to protect the business against liability arising from the use of vehicles that are not owned by the insured, yet are utilized for business purposes. This coverage typically applies to situations where employees or other individuals use their personal vehicles or rented/borrowed vehicles while conducting business activities. This coverage is important because it ensures that the business is protected from potential liabilities, such as bodily injury or property damage that could occur while a non-owned vehicle is being used for business-related tasks. In contrast, options related to vehicles owned directly by the business or those used exclusively for personal purposes do not fall under this specific coverage. Hence, those would not benefit from Non-owned Autos coverage, making the correct choice reflect the nature of coverage intended for non-owned vehicles actively used in a business context.