Commercial Automobile

Commercial Automobile coverage protects you from liability to third parties for bodily injury and/or physical damage caused by an automobile covered by your policy.  It also may protect your vehicles for physical damage (comprehensive and/or collision coverage.

1. “Auto” means a land motor vehicle, trailer or semi trailer designed for travel on public roads but does not include mobile equipment

2. Automobile liability coverage is extended to the following:

• Trailers with a load capacity of 2,000 pounds or less
• Mobile equipment while being carried or towed by a covered auto

3. Non-Owned automobile coverage protects your business from liability that you may have for

• employees using their personal vehicles on company time
• underinsured or uninsured subcontractors working for you going to and from a jobsite

4. Hired automobile liability coverage provides coverage to you for use of a rental car

5. The decision of whether or not to keep Comprehensive and Collision coverage on a vehicle should be reviewed annually as a vehicle depreciates (high mileage, existing damage, age of vehicle) to determine what you will actually receive in the event of damage to that vehicle

6. Rental car coverage- your liability is covered if you have “hired” auto coverage and the vehicle is rented in the company name (using company credit card).  Hired auto physical damage (which is an additional coverage available as well) covers damage to the vehicle but does not cover loss of use unless you purchase the Collision Damage Waiver from the rental company.

7. Drive Other Car (DOC) coverage: This coverage needs to be added to the commercial auto policy when the owner has all family owned vehicles insured through the business’s commercial auto policy. It also would need to be added when employees that do not have a personal auto policy are using company vehicles.  This provides individual liability coverage typically found in personal auto policies.

8. Property that is located in vehicles is not covered by the auto policy.  This must be covered under an inland marine policy.  Examples of this are: tools and/or equipment stored in a van or truck that is broken into, stolen or damaged in an auto accident.

9. Insurable Interest- Automobiles insured must be owned by or titled to the named insured on the declaration pages or there must be a written lease agreement.

10. Automobile claims are adjusted on an ACV basis.

11. You should always remember that for many people, their first impression of your company is one of your vehicles – with that in mind:

• How do your vehicles look?
• How do your employees act when representing your business?

12. You should have a written driving policy that includes:

• a Motor Vehicle Record (MVR) policy that sets the minimum acceptable standards for drivers operating company vehicles (any deviation from this policy must be well documented). Policy would exclude:
  • Drivers with two or more minor moving violations and/or at fault accidents in three years
  • One or more major violations (DUI, reckless driving, operating uninsured vehicle)
• annual review of each driver’s MVR
• a requirement that a review of the applicant’s 10 year MVR should be part of the hiring process
• limitation on who is allowed to operate a company vehicle provided to employees (no use by family members)