Business Auto Policy Five Key Issues q The

Business Auto Policy Five Key Issues q. The webinar will begin shortly. q. There is no audio at this time. q. This presentation is being recorded for your viewing pleasure at a future date. q 100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls. q. The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right. q. The Power. Point presentation is also available under ‘Materials’. q. You will receive the course number for your state near the end of class. q. Use the ‘chat’ window for questions Find us on Linked. In & Facebook! Insurance Community Centeron the content. 1 A Center For Learning, A Community For Sharing www. Insurance. Community. Center. com

Welcome to your Insurance Community University Audio • All of you are currently on mute – Un-mute your own system – Telephone Option • Select Telephone on your screen • Dial in the PIN number so that your number becomes active – Microphone and/or Speaker Option • You can use this option if you have a headset that you use with your computer Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com 2

Participation & Chat Window • You will receive information from the monitor via the ‘Chat’ window. – Please locate window in the control panel • Q & A is welcomed during the presentation and at the end of the presentation • You will find the question box on your control panel – Write your question in that box and send it to the presenter/organizer • The presenter will take those • questions in the order submitted Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com 3

DOI Requirements • When you see a slide with the hand up symbol, touch the “hand” icon on your control panel – Click ONCE only • If you do not raise your hand, the monitor will be in contact with you in the chat box • If you are in a group, the designated proctor is responsible to make certain you are all in = Hand is down attendance at all times Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com 4

Polling • Throughout the class we will be conducting periodic polls • We need 100% participation on the polls • The polls are intended to check participation but also to create discussion topics throughout the presentation Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com 5

DOI Requirements • We will file your hours with the DOI after the completion of this webinar and we have received the attendance form. • You have 48 hours to return the form • You will be sent a Certificate of Attendance/Completion by email. Please retain this for your records for five years. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com 6

Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is intended as a general guideline and any interpretations provided by Insight do not modify or revise insurance policy language. The authors of these materials, Insight Insurance Consultants is a division of Insight Consulting and Management Inc. In providing these materials, Insight assumes neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright 2010 – 2012 All Rights Reserved www. insurancecommunitycenter. com Laurie: 714. 803. 5830 laurie@insurancecommunitycenter. com Marjorie: 714. 206. 9583 Marjorie@insurancecommunitycenter. com Find us on Linked. In & Facebook! Insurance Community Center 7 www. Insurance. Community. Center. com A Center For Learning, A Community For Sharing

Your Instructor Today Al Parizo, AFIS, CISC Looking for his car in the RMNP parking lot. Has anybody seen my keys? Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 8 www. Insurance. Community. Center. com

What This Course Will Cover 1. Background on the Business Auto Policy including eligibility and exclusionary language in the CGL 2. Mobile Equipment vs. BAP 3. Review of the coverage parts of the BAP including-- Who is the “insured” on a BAP and who is NOT an “insured” Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

What This Course Will Cover 4. Proper Use of Symbols 5. Endorsements Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Background on the Business Auto Policy including eligibility and exclusionary language in the CGL Auto Exposures Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

BAP Eligibility All businesses including body shops, repair, parking except: • Garage risks • Auto Dealers • Motor carrier • Hauls for of their own and of others Sole proprietor eligible but has personal auto option (not necessarily a good option) Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 12 www. Insurance. Community. Center. com

Eligible Vehicles Any land vehicle designed for use on public roads • Motorcycle • Private passenger vehicle • Truck / Tractor/trailer units Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 13 www. Insurance. Community. Center. com

Auto Use, Classification and Premium Development Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 14 www. Insurance. Community. Center. com

Classifying Vehicles Establishes rating factors to charge proper premium Garaging locations Vehicle weight Gross vehicle weight (GVW) – maximum loaded weight Gross combined weight (GCW) – used for multi-unit vehicles Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 15 www. Insurance. Community. Center. com

Classifying Vehicles Radius Class Determine radius on a straight line from the street address of principal garaging • Local - up to 50 Miles • Intermediate - 51 to 200 Miles • Long Distance - over 200 Miles Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 16 www. Insurance. Community. Center. com

Vehicle use Personal Commercial • Service Use: Autos used for transporting the insured's personnel, tools, equipment and incidental supplies to or from a job location. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 17 www. Insurance. Community. Center. com

Vehicle use Retail Use: Autos used to pick up property from, or deliver property to individual households. Commercial Use: Autos used for transporting property other than those autos defined as service or retail. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 18 www. Insurance. Community. Center. com

Rating Physical Damage • Age of Vehicle • Value of the Vehicle • Usage, radius, garaging location Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 19 www. Insurance. Community. Center. com

Business Auto Policy Structure Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 20 www. Insurance. Community. Center. com

Policy Documents Common Policy Declarations BAP Declarations Pages Common Policy Conditions Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 21 www. Insurance. Community. Center. com

Coverage Specific Documents Added Business Auto Coverage Form (CA 00 01) Insurance Community Center A Center For Learning, A Community For Sharing Endorsements Find us on Linked. In & Facebook! 22 www. Insurance. Community. Center. com

Business Auto Declarations (CA DS 03) § Used to synopsize the coverages provided on the policy § Named Insured and Mailing Address § Policy number and period of coverage § Coverage forms and endorsements included § Type of business § Garaging locations § Vehicle classifications Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 23 www. Insurance. Community. Center. com

Business Auto Declarations (CA DS 03) Three things trigger coverage • Symbols – identifies autos that are covered autos • Limit of Insurance • Premium charged Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 24 www. Insurance. Community. Center. com

Eligible Vehicles Motorized Equipment subject to financial responsibility or other insurance laws Owned / Leased / Rented / Borrowed / Non-Owned Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 25 www. Insurance. Community. Center. com

Available Coverages Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 26 www. Insurance. Community. Center. com

Liability Pays defense and damages when legally liable for ownership, maintenance or use of a covered auto Covers bodily injury or property damage to other persons or property Includes injury to passengers Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 27 www. Insurance. Community. Center. com

Liability Limits Bodily injury Single Limit, typically $1, 000 Property damage Applies per accident Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 28 www. Insurance. Community. Center. com

Physical Damage to Covered Autos Comprehensive / Specified Causes of Loss Collision Loss of use of covered auto Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 29 www. Insurance. Community. Center. com

Coverages Added By Endorsement Uninsured Motorists Medical Payments • Bodily Injury from another party who is uninsured • Match Liability Limits • Pays medical and funeral expenses to occupants of a covered auto • $5, 000 or $10, 000 person Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 30 www. Insurance. Community. Center. com

Covered Auto Symbols Remember – these are used to trigger coverage Different symbols are used with the various coverages Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 31 www. Insurance. Community. Center. com

Purpose of Symbols • Indicates which autos are covered autos for identified coverages • Request on the application • Verify policy issued with symbols as requested Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 32 www. Insurance. Community. Center. com

Covered Autos § Symbol 1 § Any auto § Used for liability coverage only § Always request this symbol as it provides the broadest coverage § Underwriter might not always provide § Next best – use Symbols 2, 8 , 9 and 19 (you can ask for more than one or different ones in each coverage area) Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 33 www. Insurance. Community. Center. com

Covered Autos § Symbol 2 § Any owned auto § Used for liability, medical payments, uninsured / underinsured motorists and physical damage § Symbol 3 § Any owned private passenger auto § Not a common symbol to use Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 34 www. Insurance. Community. Center. com

Covered Autos § Symbol 4 § Any owned auto other than private passenger § Not a common symbol to use § Symbol 5 § Compulsory No-fault § Not used in California as we are not on a ‘no-fault’ system Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 35 www. Insurance. Community. Center. com

Covered Autos • Symbol 6 § Compulsory Uninsured Motorists § Not used in California as insurance buyers are allowed to reject coverage – not recommended Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 36 www. Insurance. Community. Center. com

Covered Autos • Symbol 7 § Any specified auto § Used for all coverages § Very restrictive symbol • Symbol 8 § Autos the named insured hires, rents or borrows Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 37 www. Insurance. Community. Center. com

Covered Autos • Symbol 9 § Autos the named insured does not own, lease, hire, rent or borrow. § Must be used in connection with named insured’s business or personal affairs § Includes employee owned vehicles while being used in named insured’s business or personal affairs. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 38 www. Insurance. Community. Center. com

Covered Autos • Symbol 19 § Used for liability coverage § Covers any vehicle for liability when subject to motor vehicle insurance or financial responsibility laws § Example is a skip loader, backhoe, fork lift • No need if using Symbol 1 for liability • Always add if using Symbols other than 1 Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 39 www. Insurance. Community. Center. com

Mobile Equipment or Auto? Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 40 www. Insurance. Community. Center. com

Newly Acquired “Autos” Symbols 1, 2, 3, 4, 5, 6 Automatic Coverage for the policy period Recommend adding as soon as insured advises Must be added at renewal Any auto Insurance Community Center A Center For Learning, A Community For Sharing Symbol 7 Very Limited Coverage ONLY IF: Replaces a vehicle with that coverage OR All Owned Are Covered AND Notified Within 30 Days Find us on Linked. In & Facebook! 41 www. Insurance. Community. Center. com

Auto Definition Land motor vehicle, trailer, semi-trailer, designed for travel on public roads Insurance Community Center A Center For Learning, A Community For Sharing Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. However, "auto" does not include "mobile equipment". Find us on Linked. In & Facebook! 42 www. Insurance. Community. Center. com

What Do You Think? Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 43 www. Insurance. Community. Center. com

Auto vs. Equipment Designed to Provide Broad Coverage Symbols as well as definition of “auto” Mobile Equipment is Usually Covered Elsewhere Many States Regulate Equipment Needs to be covered on a BAP When on a Public Road Subject to Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 44 www. Insurance. Community. Center. com

Use and Coverage of Mobile Equipment • BAP provides liability coverage when it is being used like an auto, subject to financial responsibility § Example: forklift on a public road subject to motor vehicle financial responsibility causes an accident. • Separate Commercial General Liability policy provides coverage when the equipment is “working” vs. “travelling”. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 45 www. Insurance. Community. Center. com

This should be no problem Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 46 www. Insurance. Community. Center. com

This could be! What covered auto symbol could help? Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 47 www. Insurance. Community. Center. com

Insureds – Policy Includes Named Insured(s) Permissive Drivers Including Employees Person or Organization that can be held liable for actions of covered persons Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 48 www. Insurance. Community. Center. com

Parties Not Covered Owner of hired or borrowed vehicle Employee using their personally owned vehicle A ‘garage’ employee driving a covered auto A non-employee loading or unloading an insured vehicle A partner or LLC member using their personally owned vehicle Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 49 www. Insurance. Community. Center. com

Liability Coverage Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 50 www. Insurance. Community. Center. com

Insuring Agreement Payment When Legally Liable Defense Damages Accident Covered Auto Covered Insured Damages BI / PD Covered Pollution Duty to Defend Ends Judgment Insurance Community Center A Center For Learning, A Community For Sharing Settlement Find us on Linked. In & Facebook! 51 www. Insurance. Community. Center. com

Covered Pollution Cost Or Expense “Accident” must cause other BI or PD Covers clean up expenses • Covered “auto” operational fluids or lubricants • Other vehicle cargo spill Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 52 www. Insurance. Community. Center. com

Do you want Fries with that? Sticky situation: A truck carrying thousands of bottles of ketchup has crashed in Reno, Nevada, covering the freeway with the Heinz sauce Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Cleanup covered? Clear away: State transportation crews used snowplows to help clear the highway connecting Reno to Lake Tahoe Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Pollution Coverage § CA 99 48 extends “Covered Pollution” to include Cargo Cleanup. § Make this a “mandatory amendatory "endorsement when marketing BAP. § This is not complete Pollution and Remediation coverage! § Make Pollution coverage a required offer on your proposals. Environmental Underwriters are your new best friend. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 55 www. Insurance. Community. Center. com

Some cargo deserves to be salvaged! Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 56 www. Insurance. Community. Center. com

Some is just plain fishy! Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 57 www. Insurance. Community. Center. com

Covered Pollution Cost Or Expense Not Covered: • Covered “auto” cargo spill • Seepage or leakage with no “accident” • “Accident” on named insured’s premises • Prior to loading or after loading is completed Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 58 www. Insurance. Community. Center. com

Supplementary Payments • In addition to the limit of liability • Costs incurred by insurance company § Defense and court costs • Out of state coverage § Follows the minimum requirements for each state if different than coverage shown Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Liability Exclusions exist because: Should not or cannot be covered by insurance Another policy provides coverage Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 60 www. Insurance. Community. Center. com

Exclusions Expected Loss Insurance cannot cover Contractual Liability Exception for liability assumed in an “insured contract” Workers’ Compensation / Employer’s Liability Covered elsewhere Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 61 www. Insurance. Community. Center. com

Exclusions Fellow Employee Endorsement Available Damage to Property Covered elsewhere Handling of Property Excludes before and after movement into or onto auto Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 62 www. Insurance. Community. Center. com

Exclusions Movement By Mechanical Device Coverage applies if attached to the auto Operations Covered elsewhere Completed Operations Covered elsewhere Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 63 www. Insurance. Community. Center. com

Exclusions Pollution Exception for “covered pollution cost or expense” War Always excluded Racing Professional Event Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 64 www. Insurance. Community. Center. com

Physical Damage Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 65 www. Insurance. Community. Center. com

Coverage Applies for Covered Autos Comprehensive • Very broad coverage • If not excluded - covered • Named Perils Specified Causes of Loss • Avoid using Collision • Damage caused by accident, whether the insured’s fault or not Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 66 www. Insurance. Community. Center. com

Coverage Extensions • Transportation Expenses § Total theft of private passenger vehicle § $20 per day maximum of $600 for temporary transportation expense § 48 hour deductible § Only if comprehensive / specified causes of loss coverage applies Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 67 www. Insurance. Community. Center. com

Coverage Extensions • Loss of Use of Rental Vehicle § Same limit § Comp / specified causes of loss / collision § No time deductible Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 68 www. Insurance. Community. Center. com

Perils Exclusions Nuclear Hazard / War Always excluded Racing Professional event Maintenance Wear and tear, mechanical, electrical, freezing blowouts Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 69 www. Insurance. Community. Center. com

Restricted Property Tapes, records other media Electronic Equipment Permanentl y Installed Sound Equipment Excluded unless necessary for normal operation Covered Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 70 www. Insurance. Community. Center. com

Limit of Insurance Actual cash value • Diminution of value excluded Cost to repair or replace Deductible applies per loss • No deductible for fire / lightning losses under comprehensive coverage Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 71 www. Insurance. Community. Center. com

Duties and Conditions • Report loss – notify authorities if required • Cooperate • Do not repair before insurance company can inspect Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 72 www. Insurance. Community. Center. com

Duties and Conditions • Company has the choice of how to pay for damage • Cannot waive subrogation rights after a loss • Concealment of material fact can void coverage Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 73 www. Insurance. Community. Center. com

Covered Territory USA Puerto Rico Canada Covered During Transit • Suit Brought in US, Puerto Rico or Canada • Worldwide Fifty Days Hired without driver • • Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 74 www. Insurance. Community. Center. com

*Tip! Limited World Wide Coverage § Recommend Foreign hired auto coverage. Responds to foreign locus. § BAP requires lawsuit to be brought back here. Not likely to happen! Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 75 www. Insurance. Community. Center. com

International Auto Tips § Eliminate Fellow Employee Exclusion. § Amend “who is an insured” to include employees hiring or renting autos in insured’s name while conducting insured’s business. § Be sure to cover hired auto physical damage. § Use admitted carrier whenever possible. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 76 www. Insurance. Community. Center. com

Additional Coverages: Medical Payments UM / UIM Added by Endorsement – but very common coverage Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Medical Payments Coverage Pays reasonable expenses for medical and funeral services Incurred within 3 years Caused by “accident” to an “insured” Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Who is an Insured Occupant of covered “auto” Named insured “Family member” if named insured is individual Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Medical Payments Exclusions Occupying as premises Nonpermissive user Owned by “family member” and auto excluded Employee injury War Garage business Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Uninsured / Underinsured Motorists Coverage • Pays for damages arising out the actions of an uninsured motorist that causes bodily injury to a covered person in a covered auto Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Why Should a Commercial Account Buy UM Coverage? Other coverage may not be available This coverage may fill some gaps In many states it is mandatory Covers when Workers’ Compensation coverage may not be available or is inadequate • Many drivers do not carry auto liability insurance • • Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Why do Insureds Not Buy This Coverage? • Usually cost • The insured does not understand the coverage • The insured believes it duplicates workers compensation • Check with your agency management § This is often a requirement to provide this coverage, even though the customer can reject in writing Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! www. Insurance. Community. Center. com

Endorsements Used to change coverage in different sections of the policy Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 84 www. Insurance. Community. Center. com

“Insured” Endorsements • Individual Named Insured CA 99 17 • Drive Other Car Coverage – Broadened Coverage For Named Individuals – CA 99 10 • Employee Hired Autos – CA 20 54 • Lessor – Additional Insured and Loss Payee – CA 20 01 Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 85 www. Insurance. Community. Center. com

“Insured” Endorsements • Designated Insured – CA 20 48 • Hired Auto Specified As Covered Auto You Own CA 99 16 • Employee As Lessor – CA 99 47 • Employees As Insureds – CA 99 33 Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 86 www. Insurance. Community. Center. com

Additional Insured • Issue: § A business partner of the insured wants to be added as Additional Insured to your insured’s auto policy • Solution: § Provide the Designated Insured endorsement Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 87 www. Insurance. Community. Center. com

Leased Auto • Issue: § Insured leases vehicles and the lessor wants the insured to provide primary coverage and to be named on the insured’s BAP • Solution: § Use the Lessor – Additional Insured and Loss Payee endorsement to provide coverage Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 88 www. Insurance. Community. Center. com

Employees Lease To Your Insured • Issue: § You insured has agreed to provide insurance on vehicles owned by employees and leased to your insured • Solution: § Add the Employee as Lessor endorsement § This endorsement provides primary insurance and covers the employee Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 89 www. Insurance. Community. Center. com

Hired Autos • Issue: § Insured hires vehicle and renting party requires that the insured provide primary insurance and name them on the insured’s auto policy. • Solution: § Add Hired Autos Specified As Covered Autos You Own Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 90 www. Insurance. Community. Center. com

Employees Rent Cars • Issue: § Your insured has employees that rent vehicles for business use. • Solution: § Add Employee Hired Auto to cover the Physical Damage and clarify Liability coverage § For Liability coverage, Symbol 1 will cover the hired auto or Symbol 8 Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 91 www. Insurance. Community. Center. com

More Than One Employee In Vehicle • Issue: § The insured has vehicles that may be occupied by two or more employees. • Solution: § Add the Fellow Employee endorsement to provide coverage for an employee causing injury to fellow employee. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 92 www. Insurance. Community. Center. com

No Personal Auto Insurance • Issue: § Your insured is a sole proprietorship and have no Personal Auto coverage • Solution: § Add Individual Named Insured § Provide coverage similar to personal auto insurance § Name the individual and legal spouse Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 93 www. Insurance. Community. Center. com

No Personal Auto Insurance • Issue: § Insured is a Partnership, LLP, LLC or Corp § Owners or key employees use a company car and do not have Personal Auto coverage • Solution: § Add Drive Other Car coverage § Covers the named persons when using a vehicle not connected to the business Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 94 www. Insurance. Community. Center. com

Employee Needs Liability Coverage • Issue: § Your insured wants to provide coverage for an employee when operating a vehicle not owned, hired or borrowed by the insured. • Solution: § Add the Employee as Insured endorsement § This endorsement is only providing Liability coverage Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 95 www. Insurance. Community. Center. com

Personal Use Vehicles • Issue: § Your insured has personal use vehicles on the BAP that are covered for physical damage. • Solution: § Add the Rental Reimbursement endorsement to provide coverage for a rental car for the insured to use if their covered auto is not usable due to a covered loss under physical damage. Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 96 www. Insurance. Community. Center. com

Pollution • Issue: § The insured carries items that could be considered a pollutant. This in “normal” for Agricultural and Contracting accounts. • Solution: § Add the Broadened Coverage endorsement CA 99 48 § Covers clean up of spilled load carried by covered “auto” § Always use when adding MCS-90 Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 97 www. Insurance. Community. Center. com

Summary • The Business Auto Policy is one of the easier coverages to sell and service • Just like any other type of insurance, however, it is not always easy to do so correctly • Ask questions – never assume Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 98 www. Insurance. Community. Center. com

Upcoming Classes Upcoming University/Paid CE Classes FREE to University Members $50. 00/charge for non university members 3/26 Insight on Property Valuation Required by CA DOI 3/28 Winery Insurance Upcoming Community Classes FREE to University Members $25. 00/charge for non university members 4/4 New Commercial Property Form 4/9 Flood—What a MESS Join the University TODAY. www. insurancecommunitycenter. com Click Join University at the top of the bar Insurance Community Center A Center For Learning, A Community For Sharing Find us on Linked. In & Facebook! 99 www. Insurance. Community. Center. com