A

If your insured has a standard business auto coverage form, a hired auto is defined as only those autos that the named insured leases, hires, rents, or borrows; a nonowned auto is defined as only those autos that the named insured does not own, hire, lease, rent, or borrow that are used in connection with the named insured's business. Based on the situation you describe, this seems to be a nonowned auto exposure.

Your insured obviously does not own the vehicles. Paying mileage does not amount to leasing, renting, or hiring. As for borrowing, a majority of courts that have discussed the meaning of “borrow” in relation to autos have concluded that the term connotes much more than merely receiving some benefit from the use of another's vehicle. These courts have determined that borrowing a car requires possession, reflecting dominion or control over the vehicle. In this case, your insured does not have such possession or control. So, the exposure facing your insured is nonowned auto, and the standard business auto policy provides excess coverage for such an exposure.