Commercial Automobile policies are designed to provide liability and physical damage protection to the business or commercial entity for use in the operations of their businesses. Commercial Auto policies, underwriting and rating is more complex than a standard Personal Auto Policy due to the many types of business related exposures that may arise depending on the type of business, the use of the vehicles, the material they may transport and whether the insured wishes to insure any vehicles, all owned vehicles only, owned Private Passenger Autos Only, etc.. We’ll stick to the basics here and list a few of the common endorsements business may need, but certainly not all.
Liability Coverage: This coverage looks to insure damages the insured must legally pay a result of bodily injury or property damage due to an accident caused by the ownership, maintenance or use of a covered auto.
Comprehensive Coverage: This coverage pays for the physical loss (in excess of the stated deductible) to a covered auto for non-collision (with another object or vehicle overturn) or for the specified causes of loss within the policy such as Theft, Windstorm, Flood, Hail, Vandalism, etc.
Collision Coverage: This coverage pays for the physical loss to a covered auto due to a collision with another object or the vehicles overturn or upset.
Uninsured Motorists: This coverage is written to pay for the Bodily Injury and/or Property Damage (written separately) in those instances where an insured vehicle is involved in an accident where the other party is at-fault but may not have Liability Coverage to pay for the injuries or damage to property caused to the insured.
Underinsured Motorists: This coverage is offered to pay for those circumstances where an insured suffers injury or property damage due to the fault/negligence of the other motorists who carries liability limits which are lower than those maintained by the insured. This coverages seeks to pay the difference between the lower at-fault party’s limits and the insured’s limits where the damages are greater than the at-fault party’s coverages.
Other Common Endorsements may include:
- Rental Reimbursement
- Hired Auto Liability
- Non-Owned Auto Liability
- Hired Car Physical Damage
- Drive Other Car Coverage
- Employers Non-Ownership Coverage