Commercial Auto and Business Liability Coverage
Business auto form
The Business Auto Coverage Form uses numbered symbols to identify covered autos: 1 any auto, 2 owned autos only, 3 owned private passenger autos, 4 owned autos other than private passenger, 5 owned autos subject to no-fault, 6 owned autos subject to compulsory UM, 7 specifically described autos, 8 hired autos only, 9 nonowned autos only. Liability, physical damage, medical payments, and uninsured motorist are separate coverages selected in the declarations.
Related coverage
Garagekeepers covers customers' cars in the insured's care. Motor carrier and truckers forms add cargo and required filings. Employer's nonownership liability covers employees' use of personal autos for business. A drive-other-car endorsement extends coverage to designated individuals.
Liability side
The Commercial General Liability form covers premises, operations, products-completed operations, and personal and advertising injury. Umbrellas sit above auto, general liability, and employers liability and may require a self-insured retention for losses not covered below. Additional insured status and waivers of subrogation are contractual risk-transfer tools that must be endorsed.
Traps
Symbol 8 does not cover owned autos; symbol 1 does. Hired auto coverage pays for rentals, not employee-owned cars used in business (that is nonowned). The CGL excludes auto liability, so never move an auto claim into the CGL.
Worked example: A salesperson driving her own car to a client causes an accident. The employer's business auto policy with symbol 9 (nonowned autos) responds, alongside her personal auto policy.