What type of coverage is provided for liability arising from the use of hired or nonowned autos in business?

Hired and Nonowned Auto Liability coverage specifically addresses liability claims that arise from vehicles that are not owned by the business but are used in the course of business activities. This coverage is essential for companies that may rent vehicles or occasionally use personal vehicles for business purposes. It protects the business from claims resulting from accidents or injuries caused while using these vehicles.

This type of coverage includes situations where employees might use their personal cars for business tasks, such as delivering goods or attending off-site meetings. Additionally, it covers rented vehicles that the business may use temporarily. Without this coverage, the business could be held liable for damages or injuries resulting from the use of these vehicles, which could lead to significant financial losses.

In contrast, other types of liability like Employers' Liability focuses on injuries to employees under workers' compensation laws, Commercial Auto Liability would cover owned vehicles primarily used for business, and Personal Auto Liability pertains to vehicles owned by individuals for personal use. Hence, the specificity of Hired and Nonowned Auto Liability makes it the correct choice for the scenario described.