Business Auto Policy

The liability coverage of the commercial auto policy provides protection against legal liability arising out of the ownership, maintenance, or use of any insured automobile. The insurance company agrees to pay damages for bodily injury or property damage for which the insured is legally responsible because of an automobile accident resulting from the covered auto.

Following are different types of coverages:

• Medical Payments
  The insuring agreement states that the insurer will pay all reasonable and necessary medical and funeral expenses incurred by an insured because of bodily injury caused by an accident.
• Uninsured Motorist
  This insuring agreement pays for bodily injury to an insured who is injured by an uninsured motorist, a hit-and-run driver, or a driver whose insurer becomes insolvent. These benefits are paid under the named insured's policy.
• Underinsured Motorist
  This coverage applies only when the other driver has liability limits at the time of an accident, but the liability limits carried may be insufficient to pay for damages for which the driver is responsible. This is when the insured's underinsured motorists coverage would apply and payment for the difference could be made.
• Owned Auto
  Coverage is provided for all autos owned by the named insured.
• Non-Owned Auto
  Coverage includes autos owned by the insured's employees or members of their households, but only while used in the named insured's business or personal affairs.
• Hired Auto
  Coverage is provided only for autos leased, hired, rented or borrowed for use in the named insured's business.
• Physical Damages Coverage:
  

  Collision Coverage This coverage provides protection against loss or damage to a covered auto or a non-owned auto resulting from the impact with another vehicle or object. Collision losses are paid regardless of fault. Comprehensive Coverage Comprehensive coverage provides protection against loss or damage to a covered auto resulting from loss other than a collision. An example of this type of coverage would be a windshield replacement as a result of a crack. Towing/Labor and Rental An endorsement with an additional premium can be added to the commercial auto policy generally with a maximum limit amount for the reimbursement of towing and rentals.

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