Business Auto Coverage Form
Type of commercial form that provides coverage for business vehicles regardless of whether they are owned, leased, hired, or borrowed. The form's coverages are divided into the following sections:
- Section I covers vehicles that are identified according to any one of nine symbols: a. Symbol #1 any vehicle; b. Symbol #2 owned vehicle only; c. Symbol #3 owned private passenger vehicles only; d. Symbol #4 owned vehicles other than private passenger vehicles; e. Symbol #5 owned vehicles subject to no-fault insurance; f. Symbol #6 owned vehicle subject to compulsory uninsured motorists laws; g. Symbol #7 specifically described vehicles (only those listed are covered); h. Symbol #8 hired vehicles only; i. Symbol #9 non-owned vehicles only. Through the above forms, the business may select only the coverages desired, thereby minimizing its insurance costs. For example, if the business desired the most comprehensive coverage, symbol #1 would be selected.
- Section II liability coverage in the event the business' negligent acts and/or omissions result in bodily injury or property damage to a THIRD PARTY as the result of operating a vehicle.
- 3. Section III physical damage coverage for property damage to the business' covered vehicles under three classifications: Comprehensive pays for all physical damage to the business' vehicles regardless of cause with the exception of collision with another object or in the event the vehicle overturns; Specified causes of loss coverage pays for physical damage to the business' vehicle only resulting from fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, or vandalism; or sinking, burning, collision, or derailment of any conveyance transporting the business' vehicle; Collision pays for physical damage to the business' vehicle resulting from contact with another object.
- Section IV conditions that describe the insured business and the insurance company's obligations if a loss should occur.
- Section V definitions discussing the critical terms in the vehicle form such as the meanings of accident, insured, vehicle, or suit.
Popular Insurance Terms
Act that prevents employers from rejecting disabled job applicants on the grounds that hiring such an applicant would result in higher employee health care cost. Additionally, if the job ...
Portion of a property or liability loss retained by a policyholder. Most policyholders do not purchase insurance to cover their entire exposure. Rather, they elect to take a deductible, or ...
Performance of management functions associated with administering an employee benefit insurance plan, to include actuarial services, booklet and contract plan designing, billing, ...
In insurance, volume of premiums written. Also describes commercial activities with the profit motive as the goal of the organization. Commercial insurance companies are organized with the ...
Worst case scenario under which an estimate is made of the maximum dollar amount that can be lost if a catastrophe occurs such as a hurricane or firestorm. ...
Exposure created by an individual acting as a host serving alcoholic beverages at no charge to persons already intoxicated, resulting in these intoxicated individuals causing property ...
Feature of pension plans whereby an employee whose service has been interrupted can have that period credited toward retirement. ...
under contract law, anything of value exchanged for a promise or for performance that is needed to make an instrument binding on the contracting parties. adherence to all provisions of an ...
Extension of coverage available under the Standard Fire Policy. The standard policy only covers the perils of fire and lightning. The endorsement covers riot, riot attending a strike, civil ...
Have a question or comment?
We're here to help.