What does "Hired Auto Liability" cover in a commercial auto line?

Hired Auto Liability is an insurance coverage that protects businesses from financial liability in the event that a vehicle rented or leased for business purposes causes damage or injury to a third party. This coverage is particularly critical as it addresses the unique risks involved when employees operate vehicles that are not owned by the business but are used in the course of the company’s operations.

The correct choice highlights the protection afforded to the business when using these vehicles, ensuring that if an accident occurs that causes damage to another party, the business is covered for resulting liabilities. This is crucial for businesses that frequently rent or hire vehicles to fulfill business operations.

The other options pertain to different aspects of vehicle use. Some options refer to personal use vehicles or vehicles owned by employees for non-business purposes, which are not covered under hired auto liability. These scenarios do not reflect the coverage intended by hired auto liability, which is strictly concerned with the business's responsibilities regarding vehicles utilized in a business context.