Chapter 9: Business Auto Policy Copy

The Business Auto Policy may be used to provide coverage for any automobile exposure which is not eligible for a Personal Auto Policy (PAP). Generally, the types of autos eligible for a PAP include:

• Private passenger autos owned or leased by an individual (including husband and wife who are residents of the same )
• Individually owned or leased “utility” vehicles and trailers which are not primarily used for the delivery or transportation of goods, materials or supplies other than samples. Farm or ranch use is permitted. Utility vehicles include pickups, vans and multi-use vehicles such as Suburban’s, Jeeps, and
• Individually owned “miscellaneous” vehicles, including golf-mobiles, motor homes, motorcycles and all-terrain vehicles, which are not used for business or commercial purposes other than farming or
• Vehicles owned jointly by resident or nonresident relatives and vehicles owned by unrelated persons residing in the same household; also, unrelated individuals residing in the same household even when only one individual owns a vehicle (optional with the company).

The BAP may cover these auto exposures eligible for a PAP when they are combined with a commercial risk or when a vehicle is used in business. In such cases, rules require attachment of the Individual Named Insured endorsement (TE 99 17G) which will duplicate coverage features found in the PAP for the individual insured named in the Declarations.

AUTOS OWNED BY AUTO DEALERSHIPS AND GARAGE-TYPE BUSINESSES WOULD NORMALLY BE WRITTEN ON THE GARAGE COVERAGE FORM, BUT THERE ARE NO RULES TO PREVENT SUCH VEHICLES BEING SPECIFICALLY DESCRIBED AND COVERED ON A BAP.

Auto : means a land motor vehicle, trailer or semi-trailer designed for travel on public roads but does not include mobile equipment.

OUT OF STATE COVERAGE EXTENSIONS

While covered auto is away from the state where it is licensed the insurer will:

• Increase the Limit of Insurance for Liability Coverage to meet the limit or limits specified by a compulsory or financial responsibility law in the jurisdiction where the covered auto is being
• Provide the minimum amounts and types of other coverage’s, such as no-fault, required of out of state vehicles by the jurisdiction where the covered auto is being

LIABILITY EXCLUSIONS

This insurance does not apply to any of the following:

• Expected or intended injury
• Bodily Injury or property damage expected or intended from the standpoint of the insured.

CONTRACTUAL

Liability assumed under any contract or agreement.

• But this exclusion does not apply to liability for damages:
• Assumed in a contractual agreement that is an insured contract; or
• That the insured would have in the absence of the contract or agreement.