Commercial Automobile Insurance is used primarily for business purposes it may be written on it's own or added to the commercial package policy (CPP). Three coverage forms are available under the business auto coverage part, which includes Business Auto, Garage, and Truckers coverage.
Business Auto Coverage: covers vehicles used to conduct business. It does not cover vehicles that are sold, stored, or repaired for clients.
Types of covered autos this coverage includes trucks, autos, trailers, and buses. Autos owned by businesses may be divided into various categories:
- Private passengers (auto, utility autos, and utility trailers)
- Commercial autos (trucks, commercial and service trailers, and semitrailers)
- Public autos (public and livery vehicles, taxis, and school buses)
Mobile equipment not included in this policy are off-road vehicles called mobile equipment, such as bulldozers, graders, forklifts, cherry pickers, and backhoes. Liability extends from the power unit while the mobile equipment is hauled or towed.
Coverage Provided bodily injury and property damage liability coverage are provided up to the limits of the policy. Physical damage coverage is also available subjects to a deductible.
Garage Coverage: this type of liability insurance is basically a package of coverages suited for automobile dealers. It consists of premises and operations coverages, contractual liability for insured (incidental) contracts, products and completed operations coverages, premises medical payments insurance, dealers physical damage, and some auto liability coverage depending upon the nature of the operation.
Premises and operations coverages (garage liability) apply when bodily injury or property damage arises out of garage operations. Garage operations include the ownership, maintenance, or use of the premises for purposes of a garage and all operations necessary or incidental to it.
Dealers physical damage Damage to the autos of an automobile dealer may be covered under this section of coverage, including autos used in the operation of the business or those being held for sale.
Exclusions Most exclusions are similar to those that apply under a commercial general liability policy, such as damage to property in the care, custody, and control of the insured.
Truckers Coverage: companies or independent truckers that transport or haul goods and other types of property are known as truckers. They may have one, several, or a fleet of vehicles.
Trailer interchange coverage Under the truckers coverage form, damage to a trailer borrowed or hired by a trucker from another trucking business for use in his own business is excluded. This covers damage to a specific trailer under the policy of the trucker who has possession of the trailer at the time of loss.
