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Main Body

Commercial Automobile Insurance

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.

Selected Endorsements

-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

$1,000,000 Oil

$5,000,000 Hazardous Cargo


















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