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SC Property & Casualty: Commercial Auto Insurance

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Commercial Auto Insurance

The Business Auto Coverage Form (CA 00 01)

Coverage is triggered by covered auto designations, the numbered symbols. Symbol 1 is any auto (owned, hired, and non-owned); 2 is owned autos only; 3 owned private passenger; 4 owned autos other than private passenger; 7 specifically described autos; 8 hired autos only; 9 non-owned autos only. Symbols 5 and 6 address no-fault and compulsory uninsured motorist states.

Coverage parts

Liability, physical damage (comprehensive, specified causes of loss, collision, towing and labor), and related endorsements. Hired auto covers short-term rentals used in the business; non-owned auto covers employees' cars used for company business. The Motor Carrier Act of 1980 endorsement (MCS-90) provides public liability evidence for for-hire carriers. Garage risks use garagekeepers coverage for customer vehicles in the insured's care, custody, and control.

Who is an insured

Drivers operating a covered auto with permission, plus the named insured's employees and partners while using a covered auto in the business. The symbol chosen determines whether hired and non-owned exposures are picked up - a frequent exam trap.

Exclusions and conditions

Expected or intentional damage, contractual liability, employee injury (workers' compensation), pollution, racing, and use of the vehicle to carry property for a fee. Other insurance is usually primary for owned autos and excess for hired or non-owned autos.

Traps

Assuming symbol 2 (owned only) covers a rental; forgetting that customer vehicles at a repair shop need garagekeepers, not the business auto form.

Rule of thumb

A delivery driver using a personal car on company business is a non-owned auto exposure - covered only if the policy includes symbol 9 (or symbol 1).