{"id":18540,"date":"2021-10-06T05:39:10","date_gmt":"2021-10-06T05:39:10","guid":{"rendered":"https:\/\/insuropedia.in?p=18540"},"modified":"2025-08-01T07:36:52","modified_gmt":"2025-08-01T07:36:52","slug":"what-parts-of-automotive-liability-are-covered-and-not-covered-under-cgl","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/what-parts-of-automotive-liability-are-covered-and-not-covered-under-cgl\/","title":{"rendered":"What parts of automotive liability are covered and not covered under CGL?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><h2 aria-level=\"2\"><b><span data-contrast=\"auto\">Overview<\/span><\/b><\/h2>\n<p><span data-contrast=\"auto\">A <\/span><b><span data-contrast=\"auto\">Commercial General Liability (CGL)<\/span><\/b><span data-contrast=\"auto\"> policy <\/span><b><span data-contrast=\"auto\">does not typically cover automotive liability<\/span><\/b><span data-contrast=\"auto\"> related to ownership, maintenance, or use of vehicles. Instead, such exposures are handled through a separate <\/span><b><span data-contrast=\"auto\">Commercial Auto Insurance<\/span><\/b><span data-contrast=\"auto\"> or <\/span><b><span data-contrast=\"auto\">Business Auto Policy (BAP)<\/span><\/b><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"3\"><b><span data-contrast=\"none\">\u2705 What\u2019s Covered:<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:281,&quot;335559739&quot;:281}\">\u00a0<\/span><\/h3>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"70\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Premises liability<\/span><\/b><span data-contrast=\"auto\"> from vehicle loading\/unloading (in some cases)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"70\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Vicarious liability<\/span><\/b><span data-contrast=\"auto\"> when a contractor or third party\u2019s vehicle causes damage on your premises<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"70\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Parking lot incidents<\/span><\/b><span data-contrast=\"auto\"> related to business operations (with some exceptions)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3 aria-level=\"3\"><b><span data-contrast=\"none\">\u274c What\u2019s Not Covered:<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:281,&quot;335559739&quot;:281}\">\u00a0<\/span><\/h3>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"71\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Bodily injury or property damage<\/span><\/b><span data-contrast=\"auto\"> caused by your owned, leased, or operated vehicles<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"71\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Auto accidents during business transport<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"71\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Any <\/span><b><span data-contrast=\"auto\">vehicle-related liability<\/span><\/b><span data-contrast=\"auto\"> directly involving operation or maintenance<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/securenow.in\/commercial-liability-insurance\/commercial-general-liability\">Commercial &amp; General Liability ( CGL )<\/a> policy provides coverage for Non-Owned and Hired Automotive Liability referred to as NOHAL.<\/p>\n<h2>Let us understand the paradigm under which NOHAL works &#8211;<\/h2>\n<p>A company would need to take necessary steps to ensure that its own fleet operation covers properly in the event of an accident. But a potential loss may arise from employees who operate their own personal vehicles for company business. Below are a few instances where the company can be accountable for the actions of its employees while they are driving their own vehicles.<\/p>\n<ol>\n<li>The administrative employee uses his\/her own vehicles to go to the post office or bank on the company\u2019s behalf<\/li>\n<li>Employee goes to pick up a visiting client at the airport<\/li>\n<li>Rented a vehicle while on a business trip<\/li>\n<li>Salesforce provided a car allowance for business use of their personal vehicles<\/li>\n<\/ol>\n<h2>Does personal automobile insurance provide insurance?<\/h2>\n<p>If an employee meets with an accident under any of these situations, the company can be held accountable. And maybe sued for damages. Typically, an employee\u2019s personal automobile insurance will provide primary insurance to both the employee and the company if the employee is using his or her own vehicle on the company business. However, there is a chance that charges will exceed the employee\u2019s policy limit. And then it would pass on to the company. Without non-owned and hired automobile liability coverage the company may be vulnerable to a costly exposure.<\/p>\n<p>Non-owned and hired automobile <a href=\"https:\/\/securenow.in\/commercial-liability-insurance\">liability insurance<\/a> covers bodily injury and property damage. Caused by a vehicle the insured hires (including rented or borrowed vehicles) or caused by non-owned vehicles (vehicles owned by others, including vehicles owned by your employees). Can also add the Non-owned and hired automotive liability coverage to the general liability CGL policy. It protects the company if it is legally liable. And as a result of an automobile accident that the employee has in a hired or non-owned vehicle while on company business.<\/p>\n<h2 aria-level=\"2\"><b><span data-contrast=\"auto\">FAQs<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:299,&quot;335559739&quot;:299}\">\u00a0<\/span><\/h2>\n<p><b><span data-contrast=\"none\">Q) Does a CGL policy cover auto accidents?<\/span><\/b><\/p>\n<p><span data-contrast=\"auto\"><b>A) <\/b>No, a CGL policy generally excludes auto accidents involving owned or operated vehicles. Auto-related liability is covered under commercial auto insurance.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\"> Q) What vehicle-related incidents are covered under CGL insurance?<\/span><\/b><\/p>\n<p><span data-contrast=\"auto\"><b>A) <\/b>CGL may cover liability arising from loading\/unloading activities or incidents involving non-owned vehicles used on your premises \u2014 but not accidents caused by your company vehicles.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\"> Q) What is excluded from CGL regarding automotive liability?<\/span><\/b><\/p>\n<p><span data-contrast=\"auto\"><b>A) <\/b>Exclusions include bodily injury or property damage from vehicle use, ownership, or maintenance. Separate auto insurance is needed for such coverage.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\"> Q) How can I cover automotive liability for my business?<\/span><\/b><\/p>\n<p><span data-contrast=\"auto\"><b>A) <\/b>You should consider a <\/span><b><span data-contrast=\"auto\">Commercial Auto Policy<\/span><\/b><span data-contrast=\"auto\"> or <\/span><b><span data-contrast=\"auto\">Hired &amp; Non-Owned Auto Liability Insurance (HNOA)<\/span><\/b><span data-contrast=\"auto\"> to cover vehicles used for business purposes.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\"> Q) Why is auto liability excluded from standard CGL policies?<\/span><\/b><\/p>\n<p><span data-contrast=\"auto\"><b>A) <\/b>Because the risks associated with operating vehicles are unique and significant, insurers separate them into dedicated auto insurance policies to ensure appropriate premium and claims handling.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h4><b>Written By- CGL<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Ritesh Garg<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MBA Insurance and Risk<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ritesh is a distinguished writer specializing in articles on Commercial General Liability (CGL) insurance for SecureNow. Leveraging 7 years of experience in the field, he possesses a thorough understanding of the intricacies and nuances of CGL policies. His articles delve into various aspects of CGL insurance, providing readers with valuable insights into liability coverage for businesses and risk mitigation strategies. Renowned for their expertise and clarity, Ritesh is dedicated to delivering informative and engaging content that empowers businesses to protect themselves against potential liabilities and risks.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview A Commercial General Liability (CGL) policy does not typically cover automotive liability related to ownership, maintenance, or use of vehicles. Instead, such exposures are handled through a separate Commercial Auto Insurance or Business Auto Policy (BAP).\u00a0 \u2705 What\u2019s Covered:\u00a0 Premises liability from vehicle loading\/unloading (in some cases)\u00a0 Vicarious liability when a contractor or third [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1255,642],"tags":[244,1145],"class_list":["post-18540","post","type-post","status-publish","format-standard","hentry","category-importance-commercial-general-liability","category-commercial-general-liability","tag-commercial-general-liability-insurance","tag-non-owned-and-hired-automotive-liability-nohal"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/18540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=18540"}],"version-history":[{"count":12,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/18540\/revisions"}],"predecessor-version":[{"id":33597,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/18540\/revisions\/33597"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=18540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=18540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=18540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}