What kind of liability coverage does a commercial auto policy provide for private passenger autos rented without a driver?

A commercial auto policy provides worldwide liability coverage for private passenger autos rented without a driver. This means the coverage is effective regardless of the geographical location where an accident occurs, as long as it is within the policy's provisions and applicable laws.

In understanding why this option is appropriate, it's important to note that businesses often engage in activities that can occur in multiple states or even countries. Therefore, having worldwide coverage ensures that the policyholder is protected against liability claims that may arise from using a rented vehicle in various locations outside their home state or country.

The other types of coverage mentioned do not adequately capture the scope of protection granted by commercial auto policies in this context. Local liability coverage would only apply within a confined geographical area, while limited liability coverage suggests restrictions that do not align with the typical protections offered. State-mandated liability coverage generally refers to the minimum coverage required by state law, which may not extend to all international or wider jurisdictional claims. Thus, the worldwide liability coverage accurately reflects the comprehensive nature of the protection available under a commercial auto policy for such rentals.