Commercial Auto Explained
Hired Non-Owned Vehicle
There are businesses that require their employees to travel, but the business does not own company cars. Often you will find entities who rent or hire cars for commercial purposes. As you may have already found out, the Personal Auto Policy contains many exclusions regarding profit-earning intentions. The Hired Auto Liability Policy provides coverage for vehicles an insured may rent or hire for commercial use.
Non-Owned Auto Liability
Extends further to provide coverage for vehicles an insured may not own, rent, hire, or lease, but is temporarily borrowing for business purposes. If an employee gets into an accident while using his own vehicle to run an errand for a service station that is incidental to the business then he would be covered.
A trucker is defined as one who transports goods, materials, or commodities for others for hire. The Trucker’s Coverage assures the payment of legal obligations regarding bodily injuries and property damages which have been caused by an accident. In addition to liability coverage, a trucker may want to call and ask about physical damage coverage and coverage for one’s trailer.
Motor Carrier Cargo
Originally designed as an alternative to the previously discussed Truckers Coverage, the Motor Carrier Coverage broadens the offered protection. We define a trucker as ANYONE who transports goods, materials, or commodities for another. In this case, coverage is provided for a “motor carrier” (not necessarily a trucker) who offers transportation in it’s efforts to further a commercial enterprise.
Non-Trucking Liability Coverage
So you own an automobile and carry personal auto coverage. Your neighbor owns a small business and you lease your car to her so she can make her deliveries. Under your personal auto policy, the transfer of commercial goods is specifically excluded. Therefore, you need a different policy to cover your automobile.
Non-Trucking Liability Coverage will cover the automobile you are leasing to others for the purposes of hauling commercial goods.
If you are in the business of selling, repairing, storing, or parking automobiles, there is an appropriate and comprehensive insurance coverage available to you. The Garage Coverage pledges coverage for liability, physical damage, and even extends to cover bailee liability and legal obligations for bodily injury and property damage.
Garage Keeper's Coverage
The owner of a garage would be placed in a very vulnerable and dangerous position without a special form of insurance called the Garage Keepers coverage form. While in the care of a garage, the owner may be held liable for any damage or loss to a customer’s automobile.