Covers:

• leased, hired, rented, or borrowed private passenger autos, trucks, trailers, and semitrailers
• liability coverage for trailers being towed by a covered vehicle(NOT for physical damage to trailer)

Excludes:

• sold, stored, or repaired for others

Liability Coverage

Supplementary Payments

•  include claims expenses incurred by the insurer
• $2,000 for the cost of bail bonds
•  reasonable expenses incurred
• $250 per day for an insured’s actual loss of earnings

Exclusions

Liability coverage

• Expected/intended
• Workers Comp/fellow employee
• Care/Custody/Control - Damage to property owned or transported by the insured
• Handling of Property/Mechanical Device handled
• Operations
• Completed Operations
• Pollution/War/Racing

Liability coverage

Limit of Liability

paid regardless of the number of:

• Covered autos
• Insureds
• Premiums paid
• Claims made
• Vehicles involved in an accident

Section III – Physical Damage Coverage

Will pay for a loss to a covered auto or its equipment under:

• Comprehensive
• Specified Causes of Loss (fire, lightning, or explosion; theft; windstorm, hail, or earthquake; flood; mischief or vandalism; and the sinking, burning, collision or derailment of a conveyance transporting the covered vehicle.)
• Collision

Section III – Physical Damage Coverage

Transportation Expenses

• pays up to $20 per day and up to a maximum of $600
• begins 48 hours after

Section III – Physical Damage Coverage

Loss of Use Expenses

• Lose of a rental
• $20 per day and up to a maximum $600

Section III – Physical Damage

Exclusion

•   nuclear hazard, war, or military action
• racing, demolition contest, or stunt activity
• Wear and tear, freezing, mechanical or electrical
• Loss to any tapes, records, discs, electronic equipment, radar, or laser detectors. (Unless permanently installed in the covered vehicle.)

Limit of Insurance

Section III – Physical Damage

•  lesser of the actual cash value of the damaged or stolen property

Deductible

Section III – Physical Damage

Deductible for collision, comprehensive, and specified causes of loss is $500

• Comprehensive deductible does not apply to fire or lightning

Section IV - Business Auto Conditions

Loss Conditions

Section IV - Business Auto Conditions

General Conditions

• Premises liability
• Products liability
• Auto liability
• Auto physical damage coverage
• Garagekeepers coverage

Garage Coverage Form 

Section I – Covered Autos

Covers 30&31 symbols

-Written in blanket form

Garage Coverage Form

Section II – Liability Coverage

• Garage Operations - other auto/covered auto
•  $100 deductible
•  Includes coverage for:

Premises and Operations Liability, Products Liability, and Completed Operations Liability.

Garage Coverage Form

Section III – Garagekeepers Coverage

 insurance for amounts the insured pays for damages while:

• servicing, repair, parking, or storing

• Comprehensive Coverage
• Specified Causes of Loss – This coverage covers fire, lightning, explosion, theft, mischief, or vandalism.
• Collision Coverage

 Garage Coverage Form

Section IV – Physical Damage Coverage

Carries persons or property for a fee, from one place to another.

• Common carriers, or truckers, may use either of the coverage forms.
• GENERAL PUBLIC

AKA motor carriers

Carries persons or property for a fee, from one place to another

• certain customers and NOT the general public
• May refuse to carry persons or property
• may only use the Motor Carrier Coverage Form.

The Motor Carrier Act of 1980

(Motor Carrier Regulatory Reform and Modernization Act)

• deregulated the trucking industry

Results:

number of motor carriers doing business increased

consumer costs associated with trucking decreased

Trucking wages decreased

Endorsement provides evidence of financial responsibility

Must be carried:

• The names of the motor carrier and the insurance company.
• The policy number and policy dates.
• Whether the insurance providing coverage is primary or excess.
• The limits of liability provided by the policy.

Endorsement allows the insured to purchase Medical Payments Coverage

• Normally do not automatically include this
•  incurred within 3 years of an accident. 

Endorsement allows the insured to purchase Uninsured Motorists Coverage

• Commercial auto forms do not automatically include this

Endorsement that allows mobile equipment such as:

•  bulldozers, forklifts, and road construction equipment to be considered covered autos