Commercial Auto and Garage Coverage
Business Auto Coverage Form
The Business Auto Coverage Form insures autos used in business. Coverage is controlled by covered auto designation symbols:
1 = Any Auto; 2 = Owned Autos Only; 3 = Owned Private Passenger Autos Only; 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.
Symbols 8 and 9 answer the common question about employees driving rentals or their own cars for company business. Who is an insured includes the named insured, permissive drivers, and - for a corporation - anyone using a covered auto with permission. Employee indemnification and fellow employee exclusions are frequently tested.
Garage and dealer coverage
The Garage Coverage Form covers garage operations, including garagekeepers legal liability for customers' vehicles in the insured's care, custody, and control. Dealers use the Dealer's Drive-Away and Dealer's Blanket forms, which cover fluctuating inventory and can include false pretense coverage for stolen vehicles obtained by fraud.
Motor carriers
Long-haul carriers add the MCS-90 endorsement to certify financial responsibility for the public. Bobtail and deadhead coverage handles tractors operating without a trailer or under no cargo. Trailer interchange agreements shift liability between carriers.
Traps
- Symbol 7 means only the listed autos; a newly purchased truck is not automatically covered without a symbol change.
- Garagekeepers is legal liability coverage and may be written on a primary or excess basis; direct (all-risk) coverage is broader.
- The MCS-90 is not a liability policy - it is an endorsement guaranteeing payment to the public regardless of policy exclusions.