What characterizes the coverage offered by non-owned auto liability?

The correct answer emphasizes that non-owned auto liability coverage applies to vehicles that are not owned by the business but are used for business activities, typically by employees or volunteers. This type of coverage is essential for businesses to protect themselves against potential liabilities arising from accidents involving vehicles that are being used for work purposes but are not part of the company's owned fleet.

Non-owned auto liability ensures that if an employee gets into an accident while using their personal vehicle or a rented vehicle for business duties, the business is still covered against claims or lawsuits that result from that usage. This coverage is particularly important since personal auto policies may not protect the business in such scenarios.

The other options do not accurately reflect the nature of non-owned auto liability coverage. For instance, claiming that it only covers owned vehicles contradicts the fundamental principle of non-owned coverage, while limiting coverage to personal use ignores the business context in which this insurance applies. Lastly, stating that it is a standard condition in all insurance policies is misleading; non-owned auto coverage is not universally included and may need to be specifically added based on a business's needs. Thus, understanding the unique context and purpose of non-owned auto liability clarifies why option B is the most accurate depiction of what this coverage entails.