Business Auto Insurance (Not in Text) Overview I. Covered Autos II. III. IV. Liability Physical Damage Conditions V. Additional Coverages and Endorsements I. Covered Autos business auto form provides flexibility with regard to purchasing various coverages for different definitions of a covered auto common definition Auto means a land motor vehicle, trailer or semitrailer designed for travel on public roads but does not include mobile equipment in choosing the definitions of a covered auto, more than one symbol may be used A. Symbol 1 Any Auto broadest definition of auto this definition is normally only used for liability coverage no other symbol is needed when Symbol 1 is used
B. Symbol 2 Owned Autos Only all autos the named insured owns includes those autos purchased during the policy period used for liability when insured does not want liability coverage for hired or nonowned autos C. Symbol 3 Owned Private Passenger Autos Only often used by insureds who desire certain coverages (i.e. comprehensive or medical payments) for private passenger autos only D. Symbol 4 Owned Autos Other than Private Passenger Autos Only often used by insureds who desire certain coverages (i.e. specified causes of loss) only for autos that are not private passenger autos E. Symbol 5 Autos Required to Carry NoFault Coverage provides coverage for those autos purchased during the policy period F. Symbol 6 Autos Required to Carry Uninsured Motorists Coverage provides coverage for those autos purchased during the policy period
G. Symbol 7 Specifically Described Autos provides coverage only for the autos that are specifically listed on the declarations page for autos acquired during the policy period, one of two conditions must be met before there is coverage 1. the insurer must already cover all autos that the insured owns for that particular coverage 2. the newly acquired auto replaces an auto which previously had that particular coverage H. Symbol 8 Hired Autos Only provides coverage only for autos that the insured leases, hires, rents, or borrows I. Symbol 9 Nonowned Autos provides coverage for autos that the insured does not own, lease, hire, rent or borrow that are used in connection with the insured s business common application for this symbol is an employee s car that is used in the insured s business
II. Liability duty to pay what the insured is legally obligated to pay because of bodily injury or property damage resulting from the ownership, maintenance or use of a covered auto A. Who is an insured? 1. Named insured 2. Other permitted users Some exceptions (not an exclusive list) employees are not covered while using their own car employee as insureds endorsement will provide coverage for this exposure anyone using the covered auto who is in an autorelated business (i.e. mechanics, car dealers) 3. Anyone liable for other insureds any person or organization liable for the conduct of someone qualifying as an insured (similar to the PAP) B. OutofState Coverage business auto form will conform to any financial responsibility law, compulsory insurance law, as well as any nofault law in effect in a jurisdiction apart from where the auto is principally garaged
C. Liability Exclusions 1. expected or intended injury identical to the CGL 2. workers compensation and employers liability 3. fellow employees no coverage is provided for bodily injury to any fellow employee of any insured arising out of and in the course of employment 4. care, custody or control no coverage for property in the care, custody or control of the insured coverage for such an occurrence is normally best handled by an inland marine policy 5. handling of property bodily injury or property damage due to property being loaded onto an auto is covered only when the property is being moved from the place where it is accepted for such purposes by the insured bodily injury or property damage due to property being loaded from an auto is covered only when the property is being moved from the auto to the place where it is finally delivered
6. pollution primarily eliminates coverage for pollutants being transported by a covered auto or someone hired to transport pollutants does not exclude coverage for pollutants that are a part of the normal operation of a vehicle (oil, transmission fluid, fuel) 7. operations involving attached equipment no coverage for the operation of attached equipment such as cherry pickers, pumps, generators, welding, building cleaning, etc. (CGL provides coverage for the operation of these types of equipment 8. completed operations 9. contractual liability similar to CGL exclusion does not apply to insured contracts insured contracts include auto rental or lease agreements (however, this is with regard to liability for others damage damage to the leased or rented auto would be covered by showing a symbol 8 for physical damage)
10. war liability assumed under contract for war 11. racing racing, practice or preparation for racing III. Physical Damage A. Collision B. Comprehensive losses caused by those causes that are not collision or overturn and are not excluded (i.e. glass breakage, hitting a bird or animal, falling objects or missiles) smaller deductible than collision C. Specified Causes of Loss provides coverage only for losses caused by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief or vandalism more restrictive than comprehensive D. Towing and Labor provides towing and labor when a covered auto is disabled
E. Theft Coverage Extension provides coverage for expenses for a substitute transportation if a covered auto has been stolen F. Rental Reimbursement Coverage provides coverage for expenses for a substitute transportation if a covered auto has been damaged by any covered cause of loss G. Exclusions H. Limits 1. catastrophic damage due to nuclear weapons or war 2. maintenance 3. electronic equipment 4. racing similar to PAP stated amount endorsement is added by the insurer to limit the insurer s liability for specialized types of vehicles whose value may increase over time
IV. Conditions coverage applies to losses occurring during the policy period when another policy covers the loss on the same basis, then the policy pays only its prorata share V. Additional Coverages and Endorsements A. Medical Payments similar to PAP medical payments provides first dollar payment (regardless of fault) for medical payments of an insured and others who are passengers in one of the insured s auto B. Personal Injury Protection (No Fault) where required by the state C. Individual Named Insured Endorsement D. Drive Other Car Coverage provides coverage similar to the individual named insured endorsement for executives who might only drive a company car and would not have PAP coverage for driving someone else s car