Commercial Auto

The following are some standard definitions that help you measure the range of losses possible in the event of damage to your business.

Commercial Auto

Business Auto Coverage
Provides select liability and physical damage coverages without the need for numerous additional forms and endorsements. Liability coverage is available for owned autos only, all autos owned, leased or hired by the insured, or all autos, including the exposure of autos owned by employees or partners and allegedly used on behalf of the insured. The third option provides the broadest protection. Optional physical damage coverages available include collision, comprehensive, coverage that applies to loss from any cause except collision or overturn, subject to a few exclusions, and specified causes of loss coverage. A less expensive alternative to comprehensive coverage paying for loss caused by named perils.

Auto Medical Payments
An optional coverage under an automobile liability policy, which pays the medical expenses of the policyholder and any of the passengers injured by the insured automobile, irrespective of who was responsible for the accident. This was originally called “basic medical payments.” In addition, it pays the medical expenses of the policyholder and members of the immediate family injured while passengers in any other automobile or when struck by an automobile. In some no-fault states, medical-payment insurance has been replaced by personal injury protection (PIP); in other states, it may supplement no-fault insurance.

Collision Coverage
Protects the owner against loss from collision or upset of motor vehicles used in the business. When a motor vehicle is sold under a finance contract or agreement, the loss payee (lender) usually requires the original copy of the policy that provides collision and comprehensive coverage.

Hired Cars
Those autos rented or hired by the business for the operator can be insured to cover the liability exposure for their operation.

Non-Owned Autos
Coverage for the policyholder against liability incurred while driving an automobile not owned or hired by the policyholder or resulting from the use of someone else’s automobile on the insured’s behalf, such as an employee using a personal car for the employer’s business purposes. This coverage is automatically included in personal and most commercial automobile policies.

Underinsured/Uninsured Motorists Coverage
Provides coverage that pays the insured, within coverage limits, for damages caused by drivers of uninsured or underinsured automobiles when such drivers are legally liable for the injury to the insured. Each state establishes the minimum limits of liability for this coverage and also whether the coverage is for bodily injury only or also extends to property damage. Limits higher than state minimums are usually available and may be provided.

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Let Lyman & Sheets help you navigate the insurance landscape.

When I arrived 15 minutes after receiving a call about a fire at our business, I was amazed to see Dave Drayton already on the scene and in contact with our carrier. He and his team saw us through the entire claim and rebuild process, and we received a very fair settlement. This is a good example of why we use Lyman & Sheets for our insurance needs.

Joseph P. Maguire
, Wolverine Development Corporation