Page 21 - Smith Ins. Primer
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Automobile
This coverage is needed for the opera on of motor vehicles. A policy includes liability coverage for protec on against third party claims arising from alleged bodily injury or property damage to members of the public. Coverage may also be provided for medical payments, collision, comprehensive perils and non-owned and hired autos.
If the associa on had no owned automobiles, non-owned and hired automobile coverage should s ll be secured. O en these coverages can be included on the master package policy. The coverages are described below:
Non-owned Automobile
Provides protec on against the exposure of the associa on from liability for opera on
of autos that it does not own. For example, a claim could be made against the
associa on when an employee is involved in an auto accident while on associa on business.
Hired Automobile
Protects the associa on from liability for opera on of automobiles that it hires, rents, leases or borrows.
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