Commercial Auto

Types of autos that can have covered autos liability coverage:

- Autos the insured owns - Autos the insured does not own, but are used for business operations - Autos the insured hires or borrows

A commercial auto policy can include any combination of the following:

- Comprehensive - includes physical damage coverage for any accident other than a collision or overturn - Specified Causes of Loss - includes physical damage coverage for six specific types of causes (referred to as 'perils') - Collision - includes physical damage coverage for a collision or overturn

The following are the additional expenses covered by PIP:

- Physical/Occupational Therapy and Rehabilitation - Psychiatric Treatment - Other Professional Health Services - Lost Wages - Child Care

Medical payments coverage will also pay for the following expenses:

- Surgical - Dental - Chiropractic

Symbols and the types of autos they represent:

1. Any Auto 2. All Owned Private Passenger Autos 3. Owned Private Passenger Autos 4. Owned Commercial Vehicle Autos 5. Provides no-fault coverage for all owned autos (only used when required by state law) 6. Provides uninsured motorist coverage for all owned autos (only used when required by state law) 7. Scheduled Autos (specific autos declared in the policy) 8. Hired Autos (no coverage if hired from employees, partners or members) 9. Non-owned Autos (such as autos owned by employees, partners or members used for business operations)

The Business Auto Coverage form helps an insured more easily understand the commercial auto coverage they have by categorizing its details into FIVE sections:

1. Covered Autos 2. Covered Auto Liability Coverage 3. Physical Damage Coverage 4. Business Auto Conditions 5. Definitions

In addition to the two main types of coverage, there are THREE types of coverage that can be added to the policy via endorsements:

1. Medical Payments Coverage 2. Personal Injury Protection (PIP) Coverage 3. Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage

Who is an insured? - There are THREE classifications of insureds who are provided coverage by a commercial auto (CA) policy:

1. Named Insured 2. Permissive Users 3. Omnibus Insureds

Auto

A land motor vehicle, trailer or semi-trailer designed for travel on public roads

Accident

A sudden, continuous or repeated exposure to the same conditions that results in "bodily injury" or "property damage"

Medical Payments Coverage

Available for insureds in most states, medical payments coverage is a 'no-fault' coverage that pays for an injured passenger in the insured's vehicle for reasonable and necessary medical or funeral expenses.

Section 2: Covered Autos Liability Coverage

Covered Autos Liability Coverage provides protection from claims for bodily injury and property damage for which an insured is legally responsible. An insured is legally liable if they own, operate, maintain, or use an auto and an accident occurs that results in BI or PD to a third party.

Permissive Users

Individuals the named insured has provided permission to operate autos covered by the commercial auto policy

Omnibus Insureds

Individuals who are legally liable for the conduct of either the named insured or the permissive users

Personal Injury Protection (PIP) Coverage

Personal injury protection coverage is only found in no-fault states. PIP coverage is a 'no-fault' coverage that pays for an injured passenger in the insured's vehicle for reasonable and necessary medical or funeral expenses; however, PIP provides more extensive coverage than medical payments.

Section 3: Physical Damage Coverage

Provides coverage for damages to or the complete loss of an insured's covered auto. Unlike the previous types of coverage that have been taught, the insured has the ability to choose the extent to which the physical damage coverage protects against a variety of different exposures.

A commercial auto insurance policy consists of TWO main coverage sections:

Section 2: Covered Auto Liability Coverage Section 3: Physical Damage Coverage

Named Insured

The individual or company listed as the named insured

Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage

Used to add coverage for bodily injury or property damage the insured may incur an accident where the at-fault third-party driver does not have insurance (UM) or has very little insurance coverage (UIM). Some states have statutes that require an insured to obtain UM and UIM coverage, whereas other states allow one or both coverages to be rejected. Each state handles UM and UIM differently.