Liability Coverages of the Business Auto Policy
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BAP Insuring Agreement
The auto liability insuring agreement states in broad terms the insurer’s obligation to respond to a claim or suit against an insured for damages because of bodily injury, property damage, or pollution cleanup costs resulting from the ownership, maintenance, or use of a covered auto.
Contractual Liability Exclusion
The business auto policy provides coverage for some contractual liability assumed by the insured in connection with the ownership, maintenance, or use of autos. The BAP insures for contractually assumed liability that the insured would have had even without the contract, and liability assumed in an agreement that qualifies as an insured contract according to the policy’s lengthy definition of that term.
The BAP applies on a primary basis for covered autos the insured owns and on an excess basis over any other collectible insurance for nonowned covered autos. When two or more policies apply on the same basis, either excess or primary, the insurer is liable only for its pro rata share of a loss.
Physical Damage Coverage
- symbol 2 (owned autos only)
- symbol 3 (owned private passenger autos only)
- symbol 4 (other owned autos)
- symbol 7 (specifically described autos)
- symbol 8 (hired autos only)
Under comprehensive coverage, the insurer will pay for loss to a covered auto from any cause except overturn or collision with another object.
When collision coverage is purchased, the insurer will pay for loss to a covered auto caused by the covered auto’s collision with another object or the covered auto’s overturn.
Auto Medical Payments Coverage (CA 99 03) Endorsement
designed to pay reasonable and necessary medical expenses for auto accident injuries. Persons insured for auto medical payments fall into two categories- the named insured and family members (if the named insured is an individual) while occupying any auto or when struck by an auto as a pedestrian and occupants of a covered auto.
Lessor-Additional Insured & Loss Payee (CA 20 01) Endorsement
states that the leased autos described in the endorsement will be considered covered owned autos. (primary basis)
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