The Standard Non-Owned Automobile Policy-SPF 6

Introduction

The standard non-owned automobile policy (the SPF 6¹) is an independent stand-alone commercial coverage. It is usually part of a package of liability coverages. In fact, some insurers issue the SPF 6 as an endorsement to their CGL (Comprehensive General Liabiliy) policy². It is rarely issued separately as a stand-alone policy.

In a nutshell, the SPF 6 provides liability coverage for accidents involving so-called non-owned vehicles. The most common situation where this policy would respond involves claims against employers for the negligent operation of vehicles the employer does not own by employees. The named insured is liable for the employee's negligence through the doctrine of respondeat superior (vicarious liability) and it is the SPF 6 policy which provides the named insured with coverage for this common law liability. However, as we will see later the coverage grant in the SPF 6 is broad enough to provide coverage in other situations as well.