Q: What is the definition of a "hired auto"? Can a general contractor with hired auto coverage hire a dump truck company and be protected in the event that the trucking company's insurance was invalid or denied coverage?

Response 1: The exposure described involving a dump truck company would be insured by an auto policy that included Coverage Symbol 9, “Non-Owned Autos." The exposure described would not be insured under Coverage Symbol 8, “Hired Auto Liability."

Here are the definitions of Coverage Symbol 8 and 9 in an ISO CA 00 01.

Symbol 8: Only those "autos" you lease, hire, rent or borrow. This does not include any "auto" you lease, hire, rent or borrow from any of your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households.

Symbol 9: Only those "autos" you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes "autos" owned by your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households but only while used in your business or your personal affairs.

Response 2: Why does your insured even want to consider hiring a trucking firm who may be in the category you described?

The definition in the ISO form does not include trucks except for those in that specific industry. I would discuss with underwriters and a senior member in the claims department before you provide any instruction to your client. By all means, this must be in writing.

Response 3: Symbol 1 would cover "Any Auto" and is the best way to have protection for the insured with respect to events involving autos.

If the insured hires, leases, rents, or borrows autos, and doesn't have Symbol 1 coverage, then adding Symbol 8 would be a very good idea.

If the insured also contracts with service providers or vendors who operate their autos in operations for your insured, then getting Symbol 9 coverage would handle that exposure. Hiring a company is not the same as hiring an auto, and if your insured hires a company that has an auto that will be used for your insured's purposes, Symbol 9 is appropriate in the absence of Symbol 1.

In short, having Symbols 2, 8, and 9 is good, but having Symbol 1 is better.

Response 4: I find that the paragraph in CA 00 01 defining Symbol 8 is pretty straightforward. Keep in mind that an arrangement lasting longer than six months would normally be thought of as a lease rather than a rental, which might mean that the underwriter would want to attach a relevant endorsement for those vehicles. I believe that the inclusion of Symbol 8 anticipates that the vehicles involved be operated by you or someone else with your permission, including employees.

If a rental or lease includes the services of an outside operator, likely no coverage would apply. Hired auto coverage is excess of any valid and collectible insurance carried by the vehicle owner, and much would depend on the particular circumstances of any loss, and the extent to which the insured might be found liable.

This question was originally submitted by an agent through the Big “I" Virtual University's (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.

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