Commercial Auto Coverage Library

Polices can provide a combination of liability and physical damage protection for vehicles owned, maintained or used by you. Additional coverages such as medical payments and uninsured motorist protection can be added to customize the policy to fit your particular needs.

AUTO DEALERS COVERAGE

Provides liability, garagekeepers and automobile physical damage coverages, as selected, for auto dealer operations. Liability coverage includes the auto dealer operations in a manner similar to a general liability policy, and the use of covered autos in a manner similar to a business auto policy. Physical damage coverage applies to the named insured's owned automobiles, not customers' cars, and applies to cars held for sale and those used in the business. Vehicles are not scheduled but instead are rated based on the number and types of employees.

Garagekeepers coverage within the coverage is for the benefit of the customer. Coverage can be purchased for collision and comprehensive or specified perils physical damage to customers' vehicles. Coverage can be on a legal liability basis or a direct coverage basis. The direct coverage basis can be either excess over the customer's other coverage or primary

AUTO MEDICAL PAYMENTS

Reimburses passengers and operators of vehicles for their medical and funeral expenses arising out of accidents occurring while traveling in an insured vehicle, or while entering or exiting it. The named insured and his or her family members are also covered when traveling in any auto and even when, as pedestrians, are struck by any auto.

BOBTAIL OR DEADHEADING LIABILITY COVERAGE

Referred to as truckers insurance for non-trucking use and provides protection for independent truckers who operate their equipment under lease with large trucking companies. While hauling for the trucking company they are protected by that company's automobile coverage. This coverage ends though when the trucker is not operating under that contract. Bobtail or deadheading insurance is needed when the independent trucker is operating a tractor either without a load or with a load that is not under that contract, sometimes referred to as "in between" driving. This protection may be provided for an independent trucker by an endorsement to a business auto policy.

BUSINESS AUTO COVERAGE

Provides selected liability and physical damage coverages without the need for numerous additional forms and endorsements. Liability coverage can be provided for all autos or coverage can be limited to selected groupings of autos or only to specifically scheduled auto. Coverage for when non-owned autos are used by employees or when autos are hired can also be provided.

Collision and overturn is one optional physical damage coverage. Comprehensive coverage, which is loss from causes other than collision or overturn is often purchased. Another less expensive option, specified causes of loss coverage, is similar to comprehensive but pays only from loss caused by named perils. The physical damage coverages are often provided on a scheduled vehicle only basis, but it can be provided on all autos or for selected groupings, just as with the liability coverages.

COLLISION COVERAGE

Protects the owner against loss from collision or upset of the motor vehicles. When a motor vehicle is sold under a finance contract or agreement, the loss payee (lender) usually requires that the purchaser provide a policy with collision and comprehensive coverage.

COMPREHENSIVE COVERAGE

Protects the insured's business autos and other motor vehicles against most causes of loss such as fire, theft or other physical damage hazards, including glass breakage. It does not cover loss due to collision and overturn and certain maintenance road hazard perils.

FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION (FMCSA) ENDORSEMENTS

Businesses subject to interstate commerce regulation. Motor carriers businesses must file a certificate with the Federal Motor Carrier Safety Administration (FMCSA) acknowledging that the motor carrier is insured for its legal and statutory obligations with an acceptable insurance company. The policy must carry an endorsement making the insurance company absolutely liable for all claims for which the insured motor carrier is liable, even though the nature of the injury or liability is beyond the terms of the policy contract. The effect is that the policy guarantees the carrier's financial solvency and ability to pay. The named insured must reimburse the insurance company for payment of any loss that would not have been covered under the policy contract except for this endorsement being attached.

GARAGE COVERAGE FORM

Provides liability, garagekeepers and automobile physical damage coverages, as selected, for garage operations. Liability coverage includes garage operations in a manner similar to a general liability policy, and the use of covered autos, in a manner similar to a business auto policy. Physical damage coverage applies to the named insured's owned automobiles, not customers' cars, and applies to cars held for sale and those used in the business. Vehicles are not scheduled but instead are subject to a reporting form.

Garagekeepers coverage within the coverage is for the benefit of the customer. Coverage can be purchased for collision and comprehensive or specified perils physical damage to customers' vehicles. Coverage can be on a legal liability basis or a direct coverage basis. The direct coverage basis can be either excess over the customer's other coverage or primary

GARAGEKEEPERS COVERAGE

An endorsement that can be added to a business auto policy. It covers customers' automobiles in the insured's custody. Coverage is available on a legal liability basis or a direct coverage basis. Either of those selections can be provided as excess over the customer's insurance coverage or as primary.

HIRED CARS

Rented or hired by the business for the operator can be insured to cover the liability exposure for their operation. A hired physical damage option is also available.

INTRASTATE SUPERVISION

Applies to carriers that operate in only a single state and who are supervised by a bureau or commission that makes certain that state requirements are complied with. Requirements as to the minimum limits and the amount of insurance that must be carried vary widely from state to state.

LEASING OR RENTAL CONCERNS–CONTINGENT COVERAGE

Provides liability and mandated no-fault coverages as excess over a lessee's required coverages. This is used by operations who lease vehicles on a long-term basis.

LEASING OR RENTAL CONCERNS–CONVERSION, EMBEZZLEMENT, OR SECRETION COVERAGE

Excluded from standard physical damage coverage. Coverage can be provided for a charge but only for scheduled vehicles. This type of exposure is really a cost of doing business for leasing and rental concerns and they should have internal safeguards to prevent such actions.

MOTOR CARRIER COVERAGE FORM

Developed after the deregulation of the trucking industry and is in tune with current methods of transporting goods. This form refers to contracts and other written agreements and is compliance with current motor carrier regulations. Any motor carrier providing transportation of goods is eligible to use this form. If a motor carrier does not have a need for the unique "who is an insured" portion of the trailer interchange section, the business auto policy may still be a solid coverage option.

NONOWNERSHIP AUTOMOBILE COVERAGE

Protects the insured to the extent of liability imposed by law and within policy limits against claims for accidents due to employees, partners or other agents operating their own automobiles in the course of the insured's business.

PUBLIC AND CONTRACT CARRIERS

Federal Motor Carrier Safety Administration (FMCSA) cargo insurance regulations apply to all interstate operators of trucks used as common carriers. They do not apply to contract carriers that haul exclusively for one or more firms and that do not accept business from other sources. When a given operator qualifies under both classifications, it is usually recommended that all insurance be placed through and with one insurance agent.

SINGLE INTEREST INSURANCE COVERAGE

Protects the lender against the inability to collect the balance due because of physical loss or damage to vehicles that it holds as collateral for loans under any mortgage, security agreement, conditional bill of sale, or other instrument. The coverage is designed and negotiated with the lender but is paid for by the vehicle owner/borrower. This coverage eases the problem of being sure that coverage is maintained by borrowers.

TRAILER INTERCHANGE COVERAGE

Provides legal liability for damage to non-owned trailers that are hauled by named insured. The Motor Carriers Coverage Form includes this as standard coverage but it must be endorsed for coverage under a Business Auto Coverage Form.

UNINSURED/UNDERINSURED MOTORISTS COVERAGE

Provides coverage that pays the insured, within coverage limits, for damages caused by drivers of uninsured or underinsured automobiles when such drivers are legally liable for the injury to the insured. Each state establishes the minimum limits of liability for this coverage and also whether the coverage is for bodily injury only or extends to cover property damage. Many states require that limits equal to the bodily injury and property damage limits be offered to the insured.

VENDORS SINGLE INTEREST COVERAGE

Protects the lender against the inability to collect the balance due because of physical loss or damage to vehicles that it holds as collateral for loans under any mortgage, security agreement, conditional bill of sale or other instrument. This eases the problem of being sure that coverage is maintained by borrowers