Under a Business Auto Policy, what condition must be met for a permissive user to be covered?

• A. The covered auto must be owned, hired, or borrowed by the named insured
• B. The permissive user must be a family member
• C. The vehicle must be leased for at least 12 months
• D. The permissive user must be the employer's agent at all times

Answer: (A)

Permissive-use coverage in a Business Auto Policy applies when the driver is using a vehicle that the policy considers a covered auto. A covered auto is one that the named insured owns, hires, or borrows. If the driver has permission to use such a vehicle, they’re covered under the policy for liability arising from that use. The other conditions aren’t what determines coverage here—being related as a family member, the length of a lease, or the driver’s status as the employer’s agent at all times don’t dictate whether permissive use is covered. So the essential requirement is that the vehicle used must be owned, hired, or borrowed by the named insured.