Explain the purpose of the following policies:
- The Garage Automobile Policy
- The Non-Owned Automobile Policy
- The Excess Automobile Policy
- The Lessor's Contingent Automobile Policy
Garage Auto Policy: provides garage personnel the coverage that the owner's policy excludes. It insures non-owned and customers' automobiles in the care, custody or control of garage personnel. It can also be used to cover personal automobiles owned by the principal and other owned vehicles used in operation of the garage business.
Non-Owned Auto Policy - provides legal liability coverage to a business entity for automobiles it does not own but may at times use for its business purpose. Often attached to the CGL Policy.
Excess Auto Policy - provides limits of liability in addition to the limits on underlying auto policies. Often written as part of an umbrella policy, it may also be added to the CGL policy. As an excess policy it makes its limit of liability available after the limit of liability on an underlying, or primary, auto policy has been exhausted. Can be used for both personal & commercial risks.
Lessor's Contingent Auto Policy - primary coverage is arranged by the lessee. Owner's policy if properly endorsed will protect both the lessee and the lessor. The lessor's Contingent Auto Policy will protect the lessor, to the extent that the lessor is legally liable as the owner of the auto, should the primary policy be terminated or fail to respond. It can be added to the CGL policy.