Permissive Use of A Business Auto by a Non-Employee

Is there coverage under a Business Auto Policy if an insured allows a permissive user (not employed by the business) to operate the vehicle? The question pertains to both personal and business use. This articles pertains to Permissive Use of A Business Auto by a Non-Employee

When  we look at who is an insured, we see that if it is just a permissive operator under the BAP (and they do not fall under b1 – 5) they are covered.

The same goes for the personal auto.

1. Who Is An Insured The following are “insureds”:

  1. You for any covered “auto”.
  2. Anyone else while using with your permission a covered “auto” you own, hire or borrow except:

(1) The owner or anyone else from whom you hire or borrow a covered “auto”. This exception does not apply if the covered “auto” is a “trailer” connected to a covered “auto” you own.

(2) Your “employee” if the covered “auto” is owned by that “employee” or a member of his or her household.

(3) Someone using a covered “auto” while he or she is working in a business of selling, servicing, repairing, parking or storing “autos” unless that business is yours.

(4) Anyone other than your “employees”, partners (if you are a partnership), members (if you are a limited liability company) or a lessee or borrower or any of their “employees”, while moving property to or from a covered “auto”.

(5) A partner (if you are a partnership) or a member (if you are a limited liability company) for a covered “auto” owned by him or her or a member of his or her household.

  1. Anyone liable for the conduct of an “insured” described above but only to the extent of that liability.