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AUTOMOBILE DEFINITIONS
Actual Cash Value Valuation
This valuation method pays for the cost to repair or replace damaged property with like kind and quality, less reasonable deductions for wear and tear, deterioration and economic obsolescence.
Agreed Value Valuation
This coverage is used to remove the coinsurance requirement for covered property. With it your company agrees that the amount of coverage purchased is adequate, and any coinsurance requirements are waived if the limit of insurance equals the agreed value.
All Vehicles And Insureds Covered
It is normally recommended that a periodic review be made of all policies that are used to cover vehicles owned by your company and its principals. This is needed because many times gaps in coverage can occur between personal and commercial Auto policies which can leave your company and its principles without adequate insurance.
Automobile Liability
This coverage is used to protect against claims alleged for bodily injury and property damage arising from the ownership, maintenance or use of any covered auto.
Automobile Medical Payments
This coverage will reimburse, without regard to your liability, all reasonable medical expenses incurred by persons as a result of bodily injury sustained by accident as defined in your policy.
Automobile Physical Damage
This coverage is used to protect the covered vehicle itself. It pays for physical damage loss that results from a covered peril.
Broad Form Products Coverage
This endorsement is used to provide coverage for property damage to products you sell in excess of a $250 deductible. It is needed because standard forms exclude losses that arise out of defects that exist at the time a product is sold or transferred to another.
Broadened Coverage Endorsement
This endorsement is used to modify the Garage policy to include several liability coverages not provided under the standard form. These include Fire Legal Liability, Personal Injury, Host Liquor Liability, Incidental Malpractice, Nonowned Watercraft, Additional Persons Insured, Automatic Coverage for Newly Acquired Business, and Limited Worldwide Products coverage.
Collision Coverage
This coverage is used to insure against loss or damage to a covered vehicle resulting from collision or upset.
Combined Single Limits
Combined single limit coverage specifies that regardless of the number of covered autos, insureds or claims occurring in any one accident, the most that you can recover is the limit of liability shown on the policy’s declaration page. This includes damage associated with bodily injury, property damage and pollution costs or expenses.
Comprehensive Perils Coverage
This coverage is used to insure against loss or damage to a covered vehicle resulting from loss excluding collision or upset.
Deductible
The deductible provision specifies the amount that will be deducted from any payment made to you because of a covered loss.
Drive Other Car Coverage
This endorsement is used to protect employees or other specified individuals when they borrow or rent cars for personal use, and do not have the protection of a Personal Auto policy.
Garage Broadened Coverage Endorsement
This endorsement is used to modify the Garage policy to include several liability coverages not provided under the standard form. These include Fire Legal Liability, Personal Injury, Host Liquor Liability, Incidental Malpractice, Nonowned Watercraft, Additional Persons Insured, Automatic Coverage For Newly Acquired Business, and Limited Worldwide Products coverage.
Garage Liability
This coverage is used to insure against liability claims arising out of your garage operations including the use of automobiles. Coverage also applies to your products or completed operations exposures subject to a deductible per claim
Garagekeepers Coverage
This insurance is used to insure against claims arising out of damage to vehicles owned by others which are left with you for storage, service, safekeeping or repair.
Hired Automobile Coverage
This coverage is used to protect against claims arising out of the use of vehicles leased, hired, rented, or borrowed by you, while in the course of business. Note that this coverage does not apply when vehicles are leased, hired, rented, or borrowed from one of your employees or a member of your household.
Medical Payments
This coverage is used to pay for medical expenses incurred by a covered person injured while driving or riding in your automobile. It provides coverage, regardless of fault, for all reasonable medical costs incurred for up to one year from the date of the accident. It does not cover injury to employees.
Non-Owned Auto Liability
This coverage is used to provide you with liability protection for autos you do not own, lease, hire, rent, or borrow while they are being used in connection with your business operations.
Personal Injury Protection (No-Fault)
This coverage is used to provide medical expenses as well as work loss, funeral expenses, essential services expenses and survivor’s loss coverage as outlined in your state’s statutory No-Fault laws.
Pollution Transportation Coverage
This endorsement is used to extend your auto policy to cover liability arising out of sudden or non-sudden release of pollutants that are being transported, towed by, handled, stored, disposed of or processed in or upon a covered vehicle. However, coverage is not provided for any liability assumed under contract, or for some types of government ordered testing or cleanup operations.
Rental Reimbursement
This coverage is used to pay for rental charges incurred if you temporarily lose the use of your vehicle(s) due to a covered loss.
Sound Equipment Coverage
This endorsement is used to provide coverage for electronic equipment that receives or transmits audio, visual or data signals other than equipment designed solely for the purpose of reproducing sound.
Specified Causes Of Loss
This coverage will insure against loss to a covered vehicle resulting from fire, explosion, theft, windstorm, hail, earthquake, flood, malicious mischief or vandalism, and the sinking, burning, collision or derailment of any conveyance transporting the covered auto.
Split Limits of Liability
You are covered up to the “per person” limit for injuries to one individual and to the “per accident” limit for injuries to two or more persons, plus a separate “per accident” limit for all damage to property.
Uninsured/Underinsured Motorist
Uninsured and Underinsured Motorist coverage protects you and your passengers against bodily injury expenses if you are hit by another driver who has no automobile liability insurance or has less than the minimum limits required by your state.
