Which coverage is specifically designed for businesses that rent vehicles?

Hired auto coverage is specifically crafted to provide protection for businesses that rent or lease vehicles. This coverage is essential for companies that may not have a full-owned fleet of vehicles but need to use rentals for business purposes. Hired auto coverage extends to the rented vehicles, ensuring that the business is protected against liabilities that may arise from the operation of those vehicles during the rental period.

While comprehensive coverage offers protection against damages to a vehicle from various non-collision-related incidents, it doesn’t specifically cater to rented vehicles used for business. Auto medical payments coverage focuses on medical expenses incurred from accidents involving the insured vehicle, but again, it doesn’t address the specific needs of rented vehicles. Towing and labor coverage assists with expenses related to towing a vehicle or labor costs due to breakdowns, without directly addressing the unique risks associated with renting vehicles for business use. Thus, hired auto coverage stands out as the appropriate choice for businesses that rent vehicles, ensuring they have the necessary liability protections in place.