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Commercial Auto vehicle Insurance

 Commercial Auto vehicle Insurance

Commercial Auto Insurance insures your vehicles for physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy. This type of business insurance covers a variety of vehicles and is also referred to as commercial car insurance, truck insurance, or fleet insurance. Our agents at UtahInsurance.com will help you find the best coverage you need for your business.

Why do you need Utah Commercial Auto Insurance? - In general, if an auto is used in tasks related to the operator's occupation, profession or business, other than commuting, a commercial policy is necessary.

  • If you are using your auto to transport goods or people for a fee or if you use your auto to conduct a service, you may need a commercial auto insurance policy.
  • A commercial auto policy may be appropriate if you need higher limits of liability because of the nature of your work.
  • Hauling a considerable weight in tools or equipment or towing a trailer used to conduct your business may require a commercial auto insurance policy.
  • A commercial insurance policy may be needed if employees operate the auto or if ownership is in the name of a corporation or partnership.

What does Commercial Auto Insurance cover? - Commercial auto insurance, like your personal auto policy, provides similar coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorists coverage to Utah businesses. However, there are also differences between a commercial auto insurance policy and your personal auto policy that may include eligibility, definitions, coverages, exclusions, and limits.

Most Commercial auto policies are "named driver only" policies, meaning only those drivers listed on the policy can operate a covered auto.

What are the coverages?

  • Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense.
  • Property damage liability coverage – provides you with protection if your car accidentally damages another persons property. It also provides you with a legal defense.
  • Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
  • Medical payments, no-fault or Personal Injury Coverage – usually pays for the medical expenses of the driver and passengers in your car incurred as a result of a covered accident regardless of fault.
  • Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
  • Comprehensive physical damage coverage – pays for damage to or replacement of your car from theft, vandalism, flood, fire, and other covered perils.
  • Collision coverage – pays for damage to your car when it hits or is hit by another object.

Providing Commercial Auto Insurance

 

COVERAGE COVERAGE DESCRIPTION

A

Accidents Displays the number of vehicle accident occurrences within the last three (3) years for this driver.

Accidents include any record not specific to property damage, personal injury or fatality and an accident

involving property damage, personal injury or a fatality. An occurrence is defined as a single count for

each chargeable offense. Citations in conjunction with a chargeable accident would be coded as a

single occurrence either as a 'major violation' or 'minor accident'

Audio, Visual and Data Electronic

Equipment Coverage

Provides coverage for electronic equipment that receives or transmits audio, visual or data signals, such

as permanently installed CB radios and mobile phones. It does not include coverage for laptop

computers, CDs, tapes, records or discs, nor sound reproduction equipment.

B

Business Auto Extensions -

Contractors

This optional endorsement provides most common coverage extensions widely used in the Artisan

Contractors industry: Blanket Additional Insured, Primary And Noncontributory coverage, and Blanket

Waiver Of Subrogation.

Blanket Additional Insured An endorsement sometimes attached to liability insurance policies that automatically grants insured

status to a person or organization that the named insured is required by contract to add as an insured.

Blanket Waiver Of Subrogation With this endorsement the insurer waives the right of recovery from a third party, but only to the extent

that this is required of the insured by a written contract or agreement that is signed and executed prior to

any loss. This waiver applies only to the person or organization designated in such contract or

agreement.

Broad Form Products Broad Forms Products Coverage endorsement may be used to delete the defective products exclusion in

the liability section of the garage coverage form. In other words, subject to other policy terms and

conditions, with this endorsement the insured would have liability coverage for property damage to its

products, even if the damage is caused by a defect existing in the product at the time it was sold to the

customer.

Broadened Pollution Coverage -

Auto

Pollution Liability - Broadened Coverage For Covered Autos (Business Auto Policy) is an endorsement to

a Commercial Auto Policy providing coverage for the discharge of pollutants which are in, upon, owned,

being transported by, loaded or unloaded from a covered auto. It offers $100,000 sublimit and requires

the underlying Bodily Injury coverage limit of $100,000 or higher.

C

Citations Violation of local and/or state motor vehicle laws. Displays the number of occurrences within the last

three (3) years for this driver. An occurrence is defined as a single count for each chargeable

offense. Citations in conjunction with a chargeable accident would be coded as a single occurrence

either as a 'major violation' or 'minor accident'.

Citizens’ Band Radio Coverage Extends physical damage coverage on covered autos to any permanently installed equipment (including

antennas or accessories) as follows:

- Citizens’ band radio

- Two-way mobile radio or telephone

- Scanning monitor receiver

Collision Coverage Covers damage to the vehicle as a result of impact with another object or overturn of the auto.

COVERAGE GLOSSARY

6/2016 1

Collision Coverage and Deductible

Buybacks - Michigan

1) Collision Coverage - ISO Commercial Automobile for Michigan Rule A1. states "The option to

purchase either Collision Coverage, Limited Collision Coverage or Broadened Collision Coverage may be

offered".

a) Collision Coverage pays regardless of cause, for any accidental collision damage to the

insured vehicle, subject to the selected deductible.

- Collision coverage is available for Commercial vehicles classified as Trucks, Tractors and Trailers at

the deductibles printed in the Michigan FIG Commercial Manual ($100 ded., $150 ded., $200 ded., $250

ded., $500 ded. $1000 ded., $2,500 ded., $3,000 ded. and $5,000 ded.).

- Collision coverage is available for vehicles classified Private Passenger (Commercial Use) at the

deductibles printed in the Michigan FIG Commercial Manual ($100 ded., $200 ded., $250 ded., $500 ded.

and $1000 ded).

b) Broadened Collision Coverage provides that those carrying collision coverage will not have to pay their

deductible where the operator of the vehicle is not substantially at fault.

- Broadened Collision coverage is available for Commercial vehicles classified as Trucks, Tractors and

Trailers at the deductibles printed in the Michigan FIG Commercial Manual ($100 ded., $200 ded., $250

ded., $500 ded. and $1000 ded).

- Broadened Collision coverage is available for vehicles classified Private Passenger (Commercial Use)

at the deductibles printed in the Michigan FIG Commercial Manual ($100 ded., $200 ded., $250 ded.,

$500 ded. and $1000 ded).

c) Limited Collision Coverage pays for damage to the insured vehicle only if the operator of the vehicle is

not substantially at fault in the accident from which the damage arose. Limited Collision Coverage is only

available if the insured does not elect to purchase Collision Coverage or Broadened Collision Coverage

- Limited Collision coverage is available for Commercial vehicles classified as Trucks, Tractors and

Trailers at No deductible (Limited Full Coverage)and $100 deductible.

- Limited Collision coverage is available for vehicles classified Private Passenger (Commercial Use) at

No deductible (Limited Full Coverage), $100 deductible and $250 deductible.

2) Property Damage Liability Coverage Buyback may be offered. If coverage is purchased, it must apply

to all autos insured on the policy. A premium is charged for each auto, other than trailers when power

units designed to tow such trailers are insured for property damage liability on the same coverage form.

Comprehensive Coverage Comprehensive covers any cause except collision of the auto with another object or overturn of the auto

and includes:

- Glass breakage

- Loss to the covered auto caused by hitting a bird or animal

- Loss caused to the covered auto by falling objects or missiles

At the option of the insured, glass breakage caused by a covered auto’s collision or overturn, may be

considered a loss under Collision coverage.

Contractors Tools & Equipment -

Auto

With additional premium and subject to policy provisions, Auto Contractors Tools & Equipment Coverage

will provide coverage for loss to contractors’ tools on and off the vehicle on a blanket basis with $3,000

per loss, $2,000 per loss for borrowed tools, $1,000 per employee, and $6,000 aggregate limits with $300

deductible per loss. This coverage is available only for a small fleet of 3 vehicles or less at the inception

of policy, and offered on monoline auto policy only. Customers who have larger fleet, need higher policy

limits or need to schedule high value items, should be referred to a BOP policy.

D

Driver Other Car Coverage Provides liability, auto medical payments, uninsured/underinsured motorist and physical damage

coverage for specifically named individuals and their spouses while they are using a non-owned auto.

The named individuals are generally executive officers, partners or employees who are furnished

company autos.

F

6/2016 2

Fellow Employee coverage The Commercial Auto coverage forms contain a “fellow employee” exclusion to prevent the Auto Liability

coverage from applying to a loss that would ordinarily be covered under a Workers’ Compensation policy.

This exclusion can create problems for employers and employees in states that permit an injured

employee to initiate a tort action against a negligent fellow employee. Fellow Employee Coverage, was

developed to address these types of situations. This endorsement deletes the fellow employee exclusion

in its entirety.

G

Garagekeepers Coverage This endorsement affords Garagekeepers coverage for damage or loss to autos that occurs while autos

are in the insured's care.

Garage Liability The Garage Liability Coverage Form provides liability for accidental injury or damages resulting from

"garage operations" involving ownership, maintenance or use of covered autos, and also for liability

resulting from other types of "garage operations" such as ownership, maintenance or use of a location for

a garage business and all operations necessary or incidental to a garage business. Garage Liability

Limits will be double aggregate.

Garage Medical Payments Under this endorsement, the insurer agrees to pay reasonable medical and funeral expenses to or for

each person who sustained bodily injury caused by an accident resulting from the maintenance or use of

garage premises and all operations necessary or incidental to a garage business. The purpose of this

endorsement is primarily for the benefit of customers of the insured, not the insured. Medical Payments

coverage applies without regard to fault and is often purchased as a good-will method of paying medical

expenses without admitting liability. You can select medical payments for automobile, premises, both or

no coverage. The "automobile" medical payments option is used to effect medical payments for auto

exposure. The "premises" option is used to effect coverage for accidents on the insured premises. No

coverage does not provide any medical payments coverage.

Garage Payroll The payroll for each employee will be used subject to an average maximum of $100 per week / $5,200

per annum, per person. All active proprietors or officers must be included at a fixed amount of $100 per

week/$5,200 per annum, per person. Family members, active on a part time basis, and who are not

compensated shall be included at a maximum of $100 per week/$5,200 per annum, per person. Do not

include any employees whose duties are strictly clerical in nature.

H

Hired Auto Coverage Hired autos are covered as an option on business autos that are leased, hired, rented or borrowed. Autos

that are owned by employees, partners, or members or their households are not covered.

I

In Transit (On-Hook) Coverage for

Towing Business

Optional coverage for damage to customers’ vehicle while being towed/carried by insured’s tow trucks

and car carriers. Please be advised that if this coverage is not selected, there will be NO coverage for

such a scenario either under BAP or Garage keepers policy. The coverage scope is selected at the policy

level, however, limit and deductible amounts can vary at an eligible vehicle level (Tow Trucks/Car

Carriers).

L

Lease or Loan coverage Lease or Loan coverage modifies the limit of insurance of the vehicle to include the amount owed by the

customer under the terms of a lease or loan agreement. Lease or Loan coverage may only be purchased

for vehicles classified as “Commercial Use - Private Passenger” on a Business Auto.

Loss of Use - Auto Auto Loss of Use is designed to pay the named insured a flat sum to assist with expenses incurred

following a loss in excess of the deductible arising under collision and specified cause of loss or

comprehensive coverage. Five “K” Coverage options are available only for vehicles classified as

“Commercial Use - Private Passenger and Light Trucks”

K-1 will reimburse up to $10 per day while the covered vehicle is in the custody of a

garage for repairs resulting from a loss under Collision coverage, with a maximum

payable of $100.

K-2 will reimburse up to $15 per day while the covered vehicle is in the custody of a

garage for repairs resulting from a loss under Collision, Comprehensive or Specified

Causes of Loss coverage, with a maximum payable of $300.

K-3 will reimburse for extra expenses incurred to return a covered auto to its garaging

address if the loss occurred over 50 miles from the address. It can only be written in

conjunction with K-2 or K-4, with a maximum payable of $200.

K-4 will reimburse up to $25 per day while the covered vehicle is in the custody of a

garage for repairs resulting from a loss under Collision, Comprehensive, or Specified

Causes of Loss coverage, with a maximum payable of $500.

K-5 will reimburse up to $50 per day while the covered vehicle is in the custody of a

garage for repairs resulting from a loss under Collision, Comprehensive or Specified

Causes of Loss coverage, with a maximum payable of $1,000.

M

6/2016 3

Major Occurrences Displays the number of occurrences within the last three (3) years for this driver. An occurrence is

defined as a single count for each chargeable offense. Citations in conjunction with a chargeable

accident would be coded as a single occurrence either as a 'major violation' or 'minor accident'.

Medical Payments Coverage Pays for reasonable expenses incurred for necessary medical and funeral services to or for an insured

who sustains bodily injury caused by a vehicle accident.

Mobile Business Interruption Mobile Business Interruption coverage replaces lost business income and/or extra expense, subject to a

waiting period and specified limits, when the covered vehicle is out of service due to a collision or

comprehensive loss.

Mobile Equipment Coverage Insures self propelled special equipment licensed for road use for Bodily Injury and Property Damage

Liability (locomotion hazard), Medical Payments, Uninsured/Underinsured Motorist, and/or physical

damage insurance when it is intended to be insured as an “Auto”.

N

Non-Owned Auto Coverage Provides optional coverage for autos that the named insured does not own, hire, lease, rent or borrow

that are used in connection with the business. This includes autos owned by the named insured’s

employees or partners or members of their households, but only while used in the business, or for the

named insured’s personal affairs.

O

Owners of Garage Premises The Owners of Garage Premises endorsement is an optional endorsement that can be used when the

insured leases its garage from another party. It adds as an insured the owner of the premises. Coverage

for the owner is limited to liability arising out of the ownership, maintenance and use of the described

premises by the owner.

P

Personal Injury Protection (PIP) Under Personal Injury Protection (PIP), often referred to as “No Fault” Coverage, insured’s recover

damages resulting from auto accidents from their own insurers rather than from another party’s insurer.

Fault is not a consideration in the determination of whether coverage applies.

Primary And Noncontributory This term is commonly used in contract insurance requirements to stipulate the order in which multiple

policies triggered by the same loss are to respond. For example, a contractor may be required to provide

liability insurance that is primary and noncontributory. This means that the contractor's policy must pay

before other applicable policies (primary) and without seeking contribution from other policies that also

claim to be primary (noncontributory).

R

Rental Reimbursement Coverage Provides coverage for rental costs incurred for the rental of an auto to replace a damaged “covered auto”.

Coverage begins 24 hours after the loss and ends when the vehicle is repaired or replaced, or when the

maximum number of days selected has been exhausted.

If the loss results from the total theft of a scheduled private passenger type auto, this coverage will pay

only the amount of the rental in excess of that already provided in the Physical Damage Coverage

extension.

Only private passenger cars and trucks or vans up to 10,000 lbs Gross Vehicle Weights are eligible for

this coverage.

Restraint System (Texas and

Nevada only)

The state of Texas has mandated that all private passenger vehicles with qualifying passive restraint

devices receive a discount on no-fault and Medical Payment coverages. For the state of Nevada,

qualifying passive restraint devices receive a discount on both UM and Medical Payment coverages.

There are four types of *restraint systems that provide various discounts:

- Air bag Driver seat only

- Air bag Driver and Passenger seats

- Automatic seat belt Driver seat only

- Automatic seat belt Driver and Passenger seats

*With the implementation of the mechanized VIN system on eCLS, the restraint systems are

automatically determined based on the VIN entered and POLK database finding a matching auto.

A passive restraint system is essentially defined as a system that is 1) continually operative the moment

an individual enters the auto and the auto begins movement, 2) restrains the occupants from movement

in the event of a collision, and 3) automatically deploys without an manual operation being performed by

the occupant of the auto. In addition, the restraint system must be factory installed and meets the

published Federal Safety Standards to qualify.

Revoked Displays the number of times that the license has been revoked within the last three (3) years for this

driver. Revoked is defined as a formal action to terminate a license, which cannot be restored but only

replaced upon application for a new license.

 .

 

Specified Causes of Loss Specified perils is described as:

- Fire, lightning or explosion

- Theft

- Windstorm, hail or earthquake

- Flood

- Mischief or vandalism

- Sinking, burning, collision or derailment of a conveyance transporting the covered auto.

Suspended Displays the number of times that the license has been suspended within the last three (3) years for this

driver. Suspended is defined as an action that results in the temporary withdrawal of a person's license or

driving privileges.

T

Towing Coverage Towing is covered for private passenger vehicles up to the limit shown in the declarations if towing is

elected. It pays towing and costs for labor performed at the place of disablement.

U

Underinsured Motorist Coverage Underinsured Motorist Coverage will pay all sums the insured is legally entitled to recover as

compensatory damages from the owner or driver of an underinsured motor vehicle. The damages must

result from bodily injury sustained by the insured caused by an accident. The owner’s or driver’s liability

for these damages must result from the ownership, maintenance or use of the underinsured motor

vehicle.

Underinsured Motor Vehicle A land motor vehicle or trailer for which the sum of all liability bonds or policies at the time of the accident

provides at least the amounts required by the applicable law where a covered auto is principally garaged,

but their limits are less than the limit of this coverage (the limits chosen to apply to the Underinsured

Motorist Coverage).

Uninsured Motorist Coverage

Uninsured Motorist Coverage pays for all sums the insured is legally entitled to recover as compensatory

damages from the owner or driver of an “uninsured motor vehicle.” The damages must result from “bodily

injury” sustained by the insured caused by an accident. The owner’s or driver’s liability for these damages

must result from the ownership, maintenance or use of the “uninsured motor vehicle”.

Utility Services - Direct Damage

(Bldg. and/ or BPP)

Pays for direct physical loss or damage to covered property caused by an interruption of covered utility

services to the described premises. The interruption must result from direct physical loss or damage by a

Covered Cause of Loss to specified types of property away from the described premises.

Utility Services - Time Element Pays for loss of Business Income and Extra Expense caused by an interruption of covered utility services

to the described premises. The interruption must result from direct physical loss or damage by a Covered

Cause of Loss to specified types of property away from the described premises.

V

Vehicle Liability Pays all sums an insured legally must pay as damages because of bodily injury or property damage to

which this insurance applies, caused by an accident and resulting from the ownership, maintenance or

use of a covered auto.

 

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