What is a 'non owned' auto?

• A. Vehicle owned by the business insured and used for personal use
• B. Vehicle not owned by the business insured and owned by an individual
• C. Vehicle owned by a partner or LLC member
• D. Vehicle rented by the insured

Answer: (B)

Non-owned auto coverage applies to vehicles not owned by the insured business but used in its operations. The owner is typically an individual, such as an employee, rather than the business itself. This distinction matters because the policy can extend liability for accidents involving those vehicles when they’re used for business purposes, even though the business doesn’t own the vehicle.

The best description is a vehicle not owned by the business insured and owned by an individual, such as an employee’s car used for company tasks. A vehicle owned by the business isn’t non-owned, and rentals or leases are handled under hired/borrowed auto provisions rather than non-owned auto. Ownership by a partner or LLC member is a nuanced case that depends on the policy, but the key idea remains that non-owned means the business doesn’t own the vehicle.