2a) If motor vehicles are owned, leased, or rented by the apartment owners, or used by the owners or their employees or by residents or unit owners on apartment business, auto liability insurance is needed.
Even if there are no owned or leased vehicles, non-ownership coverage should be obtained covering the apartment owner’s liability when employees, residents or unit owners, or others operate motor vehicles on behalf of the apartment owners. Note that motor vehicles not used off premises and not licensed for highway use (lawn mowers, golf carts, etc.) are exempt, as their use is generally covered under the CGL insurance.
Substantial limits of automobile liability should be purchased as well. If umbrella coverage is used and includes the auto liability, the umbrella underwriters may well set mandatory minimum primary auto liability limits which must be carried to avoid a gap in coverage.