Business Auto Coverage Form
Definition of "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
Written form which has precisely the same terms as the other property insurance policies covering a particular property. ...
Coverage during the operation of a ship for: Property of Ship (ship's hull, tackle, passenger fittings, equipment, stores, boats), and ordnance; Property Damage Liability (ship's owner ...
Provision in automobile insurance, such as the personal automobile policy (pap), stating that a particular policy furnishes adequate coverage, the minimum of which is at least equal to that ...
Provision for every citizen of the United States to be guaranteed by law the right to purchase health insurance and is required by law to make such a purchase. ...
Legislation designed to provide the structural reform necessary to strengthen the thrift industry after the bailout of the insolvent Federal Savings and Loan Insurance Corporation (FSLIC) ...
Standard State Valuation and Non forfeiture Law approved by the national association of insurance commissioners (naic) in 1942. This law is named for Alfred N. Guertin, the actuary who ...
Marine cargo coverage for a single shipment of goods. Also known as special risk insurance and trip cargo insurance. Contrasts with open policy cargo insurance that covers all of a ...
Same as term Contractors Equipment Floater: form of marine insurance that covers mobile equipment of a contractor, including road building machinery, steam shovels, hoists, and derricks ...
Statement showing the amount of money owed the agent by the insurance company, according to the contract he or she has with the insurance company. ...
Have a question or comment?
We're here to help.