BROCHURE: UNDERSTANDING THE ISO THE BUSINESS AUTO COVERAGE FORM

(October 2019))

The person injured in an automobile accident may be a young child, a wage earner, a surgeon, or a homeless person. The costs of the accident may be relatively small or run into the millions of dollars, depending on the victim and his or her injuries. Do you have the assets to handle such costs? Moreover, is that the way you want to use them? If not, the Insurance Services Office (ISO) Business Auto Coverage Form is designed to protect you.

Consult the policy for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

WHAT IS COVERED

The ISO Business Auto Coverage Form protects your assets in several ways.

• Covered auto liability coverage insures your legal obligations that arise from an accident, including lawsuits and their associated costs. The limits you purchase should be high enough to handle the potentially serious injuries and loss of earnings a victim may sustain.
• Uninsured and underinsured motorists coverages protect you when you are involved in an accident caused by a driver who has no insurance or insurance with relatively low limits. The limits you select for this coverage should be the same as your liability limits.
• Physical damage coverage on vehicles directly protects your assets. Comprehensive, Specific Causes of Loss and Collision are the coverage options available. Deductibles should be as high as you can comfortably absorb to maximize the protection provided relative to the premium cost.
• Medical payments coverage and towing expense costs for private passenger vehicles are other optional coverages to consider.

WHAT IS NOT COVERED

Every insurance coverage form or policy has limitations and exclusions. This is because either the coverages are needed by only specific types of businesses or the risk or exposure to loss is not considered insurable for one or more reasons. Some of the more common exclusions are:

• Expected Or Intended Injury
• Contractual
• Bodily Injury To Employees
• Care, Custody Or Control
• Handling Of Property
• Operations and Completed Operations
• Pollution
• War
• Wear and Tear
• Certain types of electronic devices

Always review the coverage form carefully for other limitations and exclusions and the details of the exclusions.

WHAT VEHICLES ARE COVERED

The coverages available are listed on the declarations. A box with numbers in it is next to the coverage. These are called symbols. They explain which autos are insured for the particular coverage. Each coverage can have one or more symbols. The symbols translate as follows:

1–All autos are covered. No additional symbols are needed.

2–All autos you own are covered.

3–Only private passenger autos you own are covered.

4–Only autos you own that are not classified as a private passenger are covered.

5–Autos you own for which no-fault coverage is required are covered.

6–Autos you own for which uninsured motorists coverage is required are covered.

7–Only scheduled autos are covered.

8–Any auto you hire, borrow, or lease is covered.

9– Any auto not owned by you but used by an employee, volunteer or partner for your business is covered but only for your benefit.

19–Mobile equipment if subject to financial responsibility laws

If symbol 1 is used, no other symbols are needed. However, a combination of the other symbols is normal when symbol 1 is not used.

LOSS CONDITIONS

You and the insurance company have responsibilities and rights following a loss. Review these to fully understand them.

• Appraisal for physical damage loss
• Duties in the event of accident. Claim, suit or loss
• Legal action against us
• Loss payment–physical damage coverages
• Transfer of rights of recovery against others to us

ENDORSEMENTS

The ISO Business Auto Coverage Form provides very broad coverage. Many endorsements are available for use with it that broaden, limit, or exclude coverage.

Note to subscribers:

Related Article: ISO Business Auto Coverage Form Endorsements Checklist can be attached.

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission from The Rough Notes Company, Inc.