Commercial auto insurance has its own terms and forms which are different than those used for personal auto insurance. The scope of coverage in the business auto policy is normally shown on the commercial auto declarations. The declarations page is extremely important to both insureds and insurers.
Commercial auto coverage may be provided either on a monoline or a package basis. The business auto coverage form is used to insure the majority of commercial enterprises against losses arising out of the ownership, maintenance, or use of automobiles.
Section I of the business auto coverage form provides the symbols that may be used in the declarations to indicate autos that are "covered autos" for purposes of the policy. Considering the importance of these symbols in determining how the policy applies, it is highly recommend that the general public understand the meaning of these symbols.
The following symbols for covered autos are normally used to indicate the coverage for different commercial auto policies:
1. Any Auto
2. Owned Autos Only
3. Owned Private Passenger Autos Only
4. Owned (Other Than Private Passenger) Autos Only
5. Owned Autos Subject to No-Fault
Symbol 5 is limited to autos licensed or principally garaged in states where no fault coverage is mandatory. The symbol used should be no broader than that shown for BI and PD liability.
6. Owned autos subject to compulsory uninsured motorists law
7. Specifically Described Autos
8. Hired Autos Only
9. Non-owned Autos Only
It is important to read and understand coverageform declarations, common policy conditions, and any applicable endorsements. We will be glad to provide you definitions and explanations.