Hired auto liability coverage will pay for damages to a third party, on behalf of insured company, if the insured causes an accident or an injury to someone while they are driving a leased, hired, rented, or borrowed vehicle for business. Non-Owned Auto coverage protects the insured company in the event that the insured company is sued as a result of an auto accident that the insured, or one of the insured employees, has in a personal vehicle while on company business.
It is wise for any trucker to have hired / non-owned liability coverage regardless of whether he has a scheduled or fleet policy and regardless of the size of his fleet. This eliminates any potential gaps in coverage, should he hire an owner operator to haul a load or have a temporary substitute vehicle on while the scheduled unit is in for repair.
There is also a coverage referred to as hired car Automobile Physical damage coverage that picks up a hired or non-owned vehicle for the purpose of physical damage. There is usually a limit attached to the coverage, since the covered vehicle is not scheduled or owned. This coverage is not to be confused with Hired and Non-owned Liability Coverage.
Hired Car Physical Damage coverage can be used to cover a short term rental that the shop gives you to replace your regular unit, and if the coverage is on file with the repair facility, then there is usually minimal paperwork.