Commercial Auto | MVB Ins. Agency, Inc

What is Business Auto Coverage Form

The business auto coverage form is an insurance form that insurers provide to business owners when creating a contract to provide insurance coverage for the company's cars, trucks, trailers, vans or other vehicles. The form is divided into five sections that define the coverage, including the types of vehicles, causes of damage and types of damage covered, in addition to both the insurer's and business's obligations in the event that damage occurs.

The business auto coverage form helps businesses review the different coverage options available to them, enabling them to select coverage that meets their company's needs while keeping costs to a minimum. Coverage may include vehicles that are owned or leased by the company or its employees.

Potential policyholders must pay careful attention to the numerical symbols listed in the policy declarations to signal which autos are insured for the various coverages. These symbols, called covered auto designation symbols, include the numbers 1 through 9 plus 19. Each symbol represents a category of covered autos. For instance, symbol 1 means "any auto" while symbol 2 means "owned autos only."

The business auto coverage form includes only two coverages: auto liability and physical damage. Other coverages and coverage amendments may be added by an endorsement. The declarations section of your policy indicates the vehicles that are "covered autos" for each coverage you have purchased. For example, suppose you have purchased liability coverage for all types of autos. These include autos your company owns, autos it hires, and autos it doesn't own.

Many insurers also offer "broadening" endorsements that can be added to the standard commercial auto policy (they aren't usually listed in the business auto coverage form). These endorsements typically include coverage enhancements under both liability and physical damage. They are a convenient way to obtain a group of coverages at a reasonable price. Because the endorsements aren't standard, they vary widely from one to the next.

Five Sections of the Business Auto Coverage Form

The business auto coverage form is a very common document for companies that must insure motor vehicles. The form has five sections to it, each providing details about the type of coverage provided. The sections usually include:

Types of Vehicles - It outlines the specific vehicles covered by this particular contract.

Causes of Damage - May include things like storms and fires

Types of Damage Covered - This lists the types of included perils or incidents covered by the policy.

Insurer's Obligations - This lists what the requirements are of the insurer in providing and signing the contract.

Business's Obligations - This lists all responsibilities of the business in maintaining the contract.