Commercial Automobile Coverage Form
– The business auto coverage form is an insurance form that insurers provide to business owners when creating a contract to provide insurance coverage for the company’s cars, trucks, trailers, vans or other vehicles.
-Truckers, this allows a trucker that owns the cab but not always the trailer. This provides coverage for the trailer, owned or not owned, while being used and even while left in different locations.
-Motor Carrier is any person or organization providing transportation by auto in a commercial enterprise. This coverage is for organizations that carry people or property. Examples would be motor coach bus and rental car companies.
Coverage Form Sections
-Covered Automobiles are Any Auto, Any Owned Auto, Any Owned Private Passenger Auto, Any Owned Other Than Private Passenger Auto, Any Auto Subject to No-Fault, Any Owned Auto Subject to a Compulsory Uninsured Motorist Law, Any Auto Listed on the Scheduled, Any Hired Auto, and Any Non-Owned Auto.
-Garage Keepers Liability covers the damage to automobiles while there are in for repair at a repair shop. It also covers automobile dealers because the vehicles still belong to the auto manufacturer, not the dealership.
-Physical Damage Coverage is very similar to physical damage coverage on the personal auto policy with the exception of specified perils. Specified perils is a named peril including, fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief or vandalism, sinking, burning, collision or derailment of any conveyance carrying the covered auto.
-Exclusions for the commercial auto policy are the same as the personal auto policy with the exception of excess speed, wear and tear, freezing, road damage to tires, and war.
-Additional Insured-Lessor Endorsement is the endorsement used to add on the leasing company as an insured on the Business Auto Policy.
-Mobile Equipment Endorsement will provide coverage for the identified mobile equipment y the endorsement and it will be covered as an auto. An example of this would be a fork truck.
-Drive Other Car Coverage Endorsement will cover an individual that drives a “company” car on a daily basis but will occasionally drive a vehicle listed on someone else’s personal auto policy.
-Individual Named Insured Endorsement allows a listed driver on a BAP to add their family members onto the BAP as log as they drive a private passenger auto.
-The Motor Carrier Act of 1980 is an insurance requirement that was created by the federal government for vehicles that carry cargo with minimum limits…
$750,000 General Cargo
$5,000,000 Hazardous Cargo