Skip to main content

15.13 Selected Endorsements

Hired Auto and Non-owned Auto Liability Endorsement​

Some businesses do not own vehicles and therefore do not need a Commercial Auto policy, but they may still have liability exposures arising from hired or non-owned autos. These exposures are excluded under the unendorsed Businessowners Policy (BOP) but can be covered by adding the Hired Auto and Non-owned Auto Liability Endorsement.

The Hired Auto and Non-owned Auto Liability Endorsement extends Business Liability coverage to bodily injury and property damage arising out of:

  • The maintenance or use of a hired auto by the named insured or the insured's employees in the course of business.
  • The use of a non-owned auto by any person in the course of the insured's business.

A hired auto is any auto the insured leases, hires, rents, or borrows. It does not include autos owned by the insured's employees, partners, executive officers, or members of their households.

A non-owned auto is any auto the insured does not own, lease, hire, rent, or borrow. This includes autos owned by the insured's employees, partners, executive officers, or members of their households when used in the insured's business.

Exclusions​

This coverage does not apply to:

  • Bodily injury sustained by the insured's employees.
  • Property damage to property that is owned by, transported by, rented to, or loaned to the insured, or otherwise in the insured's care, custody, or control.

Insureds​

Under this endorsement, the following are considered insureds:

  • The named insured.
  • Any person using a hired auto with the named insured's permission.
  • Any partner, executive officer, or employee using a non-owned auto in the course of the insured's business.

However, a partner, executive officer, or employee is not an insured while using an auto they own or that is owned by a member of their household. Instead, this endorsement protects the business against liability arising from that business use. Any personal liability of the individual is covered, if at all, under the individual's own auto insurance policy.

Protective Safeguards Endorsement​

The Protective Safeguards Endorsement adds a Section I condition requiring the insured to maintain the protective safeguards listed in the endorsement. These safeguards may include:

  • Automatic sprinkler system
  • Automatic fire alarm
  • Security service with a recording system or watch clock that makes hourly rounds when the premises are not in operation
  • Service contract with a privately owned fire department
  • Automatic commercial cooking exhaust and extinguishing system
  • Any other protective system specifically described in the endorsement

If an automatic sprinkler system or commercial cooking exhaust and extinguishing system is damaged and out of service for 48 hours or more, the insured must notify the insurer. If the required protective systems are not maintained, or if the insured knew of their suspension or impairment and failed to notify the insurer before a fire loss, coverage for that loss is excluded.

Utility Services – Direct Damage Endorsement​

The Utility Services – Direct Damage Endorsement covers direct physical loss to covered property caused by an interruption of water, communication, or power supply services to the described premises. The interruption must result from direct physical damage to utility services property caused by a covered peril. Some insurers require the damaged utility services property to be located outside the covered building. This endorsement does not cover loss or damage to electronic data.

A separate limit of insurance for utility services is shown on the endorsement. This limit is subject to the applicable covered property limit of insurance.

Utility Services – Time Element Endorsement​

The Utility Services – Time Element Endorsement covers business income losses and extra expenses resulting from an interruption of water, wastewater removal, communication, or power supply services to the described premises. The interruption must result from direct physical damage to utility services property caused by a covered peril. Some insurers require the damaged utility services property to be located outside the covered building.

The Utility Services – Time Element Endorsement does not cover business income or extra expense losses resulting from an interruption of utility services that causes the loss of or damage to electronic data.

A separate limit of insurance shown on the endorsement applies to these losses per occurrence. This limit is subject to the applicable covered property limit of insurance.

Earthquake Endorsement​

The Earthquake Endorsement adds earthquakes and volcanic eruptions as covered causes of loss. All earthquake shocks or volcanic eruptions occurring within 168 hours are treated as a single occurrence. This 168-hour period continues even if the policy expires during that time.