What is Hired Auto Physical Damage Coverage?

Great West offers this Physical Damage coverage to cover the bailee exposure an insured may have for autos they hire or borrow. A hired auto is a covered auto owned by someone other than you, hired by or rented to you as the bailee, for a special purpose on a short-term basis. When hiring or renting such an auto, you are responsible for any damage to it.


Physical Damage Hired Auto Optional Coverages

There are three optional coverages available: comprehensive, specified causes of loss, or collision. Comprehensive is a broader coverage option than specified causes of loss. While your fleet may be insured for specified causes of loss, you should consider buying comprehensive and collision as your responsibility for damage to hired autos may require broader coverage. There are three unique points about this coverage:

  1. One limit of insurance applies to all covered autos for the actual cash value of all autos combined.
  2. The definition of a covered trailer includes shipping containers.
  3. Our coverage does not pick up damages for loss of use of a hired auto that may be asserted by the owner. That is a business risk you assume.

You may purchase this coverage for trucks, tractors, or trailers, for private passenger-type autos, or for both.

When determining the total limit of insurance, be sure to value each hired auto at actual cash value and then total all values for the limit you need. You should purchase a limit for the worst-case scenario. Since this coverage is separate from what you are buying for your owned or leased equipment, you may also choose a deductible different from that which applies to owned units.

We are able to activate this coverage once we review and approve the exposure. So we may price coverage correctly, we will need to know how the hired or borrowed units will be used, and, particularly for trailers and containers, where they are stored and location values.

This summary is intended for informational purposes only and does not replace or modify the definitions or information contained in any insurance policy or declaration page, which controls all coverage determinations. Terms and conditions may vary by state, and exclusions may apply.