Ritman Insurance Insights

Ritman Insurance Insights

UM/UIM - Hired/Non-Owned Coverage

Posted 9:12 PM

Indiana Commercial Auto InsuranceStandard Business Owner Policies (BOP) and Commercial Package Policies (CPP) do NOT have Commercially Owned Auto coverage.

In Indiana, BOP and Commercial Package Policies generally do not have Uninsured / Under Insured (UM/UIM) coverage.

  • Hired - Non Owned coverage does NOT apply to Partners / Executive Officers driving their own vehicles on business.
  • Hired - Non Owned coverage DOES apply to the law firm if the entity is named as a Defendant

Partner slams into another car: Partner is NOT covered under Hired - Non Owned

The Partner's Personal Auto policy will respond first, then the Partner's Personal Umbrella will respond. The law firm's Hired / Non Owned coverage will NOT respond to the Partner's liability.

If the Partner's law firm is also named as a defendant, the firm's BOP / CPP will respond on behalf of the law firm entity only if the BOP/CPP has Hired - Non Owned coverage included.

Commercial Auto Policy: If the law firm has a Commercial Auto Policy and Designation #1 - ALL AUTOS is designated, Partners and Executive Officers ARE covered under Hired - Non Owned

Hired - Non Owned coverage DOES apply to Suzy Secretary and Alan Associate when driving their personally owned vehicles on business.

Suzy Secretary slams into another car: Secretary IS covered under Hired - Non Owned The secretary's personal auto policy will respond as primary, then her personal umbrella, if any. The firm's BOP/CPP Hired - Non Owned will respond on behalf of Suzy and the law firm as excess if named as a defendant if the BOP/CPP has Hired - Non Owned coverage included.

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