Ch. 14 - Business Auto Policy

business auto insurance

Important auto symbols for business auto coverage form:

1 = any auto

7 = specifically described autos

8 = hired autos only (leases)

9 = nonowned autos only (used in business but not owned/leased)

19 = mobile equipment

Who is an insured in BAP?

person or organization named

anyone else except: owners of the auto, someone in business of selling/repairing, employees and partners for autos they own

Exclusions for BAP liability:

pollution (pesticides, milk, etc.)

injuries to employees

PD or pollution cost

mobile equipment unless being transported by covered vehicle

racing

Named perils coverage for BAP excludes:

flood, glass breakage, animal collision

Insurer may cancel BAP in effect for less than (blank) days for any reason:

90 days

Insurer may refuse to renew, but must give (blank) notice

60 days

Insurer must give written notice to insured at least (blank) days before cancelling policy.

10 days

Garage insurance

same basic coverage as BAP with specialized coverages to meet needs of auto related businesses.

Types of businesses eligible for garage insurance:

auto dealers

auto repair shops

service stations

car washes

storage garages and public parking facilities

Garage Operations - Other Than Covered Auto

loss must be direct result of insured’s operations

Garage Operations - Covered Auto

results from ownership, maintenance, or use of covered autos

Garage insurance provides medical payments coverage as well as supplemental payments and out-of-state (same as BAP), but these 2 must be added by endorsement:

personal injury

uninsured/underinsured motorist

Garagekeepers insurance

bailee coverage that covers damage left in insured’s care that they are legally liable for

service, repairs, parking, storage

Garage operations

ownership, maintenance, use of locations for garage businesses, including adjoining roads

Products

goods or services made or sold by insured in garage business

Work performed

includes work provided on insured’s behalf and providing/failure to provide warnings or instructions

symbol for “any auto”

1

symbol for “specifically described autos”

7

symbol for hired autos only (leases)

8

symbol for nonowned autos only (used in business but not owned or leased)

9

symbol for mobile equipment

19