Personal Auto PolicyQuestion 413 of 531
A florist's employees deliver arrangements in their own cars. The exposure the shop should insure is:
a.Non-owned auto liability coverage
b.Physical damage on each employee's own car
c.Garagekeepers coverage for customers' cars
d.Hired auto liability for vehicles it borrows
Explanation
A business is exposed to vicarious liability when employees run its errands in their own vehicles, and non-owned auto liability answers that exposure on the business auto policy. Hired auto liability picks up vehicles the firm rents or borrows, a different group of autos, and collision damage to an employee's own car stays on that employee's personal policy.
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