The coverage that extends liability when a driver uses a company car is called?

• A. Named Non-owned coverage
• B. Extended Non-owned Liability
• C. Drive Away Liability
• D. False Pretense

Answer: (B)

The key idea is non-owned auto liability coverage—protection that applies when you drive a vehicle you don’t own. When a driver uses a company car, the insurer can extend liability coverage to that non-owned vehicle so the driver is protected in case of a claim or lawsuit stemming from an accident while using the company car.

The term Extended Non-owned Liability signals this expansion: it covers liability for non-owned autos used by the insured, including corporate or company vehicles. In other words, if the employee causes damage or injury while driving the company car, the policy’s liability protection extends to that situation, just as it would for the insured’s own car, up to the policy limits.

Other options aren’t the standard way this extension is described. Drive Away Liability isn’t a recognized auto coverage term for this scenario; False Pretense relates to criminal fraud rather than insurance coverage; Named Non-owned coverage refers to non-owned vehicles specifically listed in the policy, which is a more limited approach and doesn’t always capture the broad situation of a company car used by an employee.