West Virginia Property and Casualty Licensing Practice Exam

The "hired non-owned" coverage endorsement under a Businessowner's Policy (BOP) is designed to provide liability coverage for vehicles that are not owned by the insured but are used for business purposes. This includes vehicles that the insured borrows or rents, thereby extending the protection against liability claims that arise from the use of those vehicles during business operations. This coverage is particularly important as it addresses a gap that may exist when employees or business owners use vehicles that are not owned by the business but are essential for carrying out day-to-day activities. It safeguards the business against potential costs resulting from accidents or injuries that occur while using these borrowed vehicles. While vehicles owned by the insured are not covered under this endorsement, as that would fall under the standard coverage in a BOP, the term "hired" incorporates vehicles that are rented (which are also included in the endorsement) but may cause confusion if not properly distinguished. Hence, the focus on borrowed vehicles makes option B correct, as it emphasizes the type of coverage that this endorsement specifically provides.