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Physical-Damage

We probably get more questions about trailers than any other vehicle. Search the VU for “trailer” and you’ll see what I mean. In this article, VU faculty member Mike Edwards addresses the subject yet again, under both BAP and PAP forms, of how to insure an owned trailer when you don’t own any autos.
Many mobile businesses today rely almost exclusively on the vehicle(s) used in the business. As a result, if a vehicle is put out of commission, the business can suffer a significant business income loss. ISO’s business income policies limit coverage to loss arising from damage to such autos only on the described premises. However, now ISO is providing a means to insure a loss of business income involving vehicles under several different programs.
Some businesses may have substantial values in equipment that is used while attached to an auto. Can this be covered under the physical damage section of a Business Auto Policy and, if so, how?
The ISO PAP extends coverage to “temporary substitute” autos One question is what constitutes “temporary”? What if your car is in the shop for six weeks and you have a loaner…at what point does it become “furnished or available for your regular use” and excluded? Some auto policies have specific time limits but the ISO PAP does not. Also, what type of coverage for “temporary substitutes” is provided by the ISO BAP? Caution: MANY agents do not understand the gap in a BAP compared to a PAP for temporary substitute autos.
The owner of a large commercial account is loaning his nonresident daughter a Ford F350 pickup for a week in order to relocate a horse in the horse trailer that she owns. He wants to know if the BAP that covers the company-owned pickup truck will cover him and his business if there is an accident while pulling the horse trailer. What do you think?
An auto collision occurred in a remote location. The towing bill of $457 was declined by the adjuster since no towing and labor coverage had been purchased. However, the policy requires the owner to protect the property from further damage and implies that such expenses are covered. Who's right?
Question: 'The commercial auto policy automatically includes coverage for a trailer pulled by that vehicle so long as the GVW is under 2,000 lbs. Many insureds have trailers titled in their names personally that may exceed the 2,000 lb. limitation. Is the nonowned auto coverage going to pick up the liability should a trailer come detached from the vehicle and cause BI or PD? Also, what about coverage for the corporate officer personally since the trailer is titled personally and not to the corporation?'
An insured veterinarian generates 50-60% of her income from two specially-equipped mobile vet labs she uses on visits to area farms or clients who have acreage and horses. She has a need (as do her clients) for business income coverage if these vehicles are damaged away from the premises. Can this be done within the ISO commercial auto or commercial property programs?
For businesses with operations that rely extensively on auto fleets, damage to vehicles can result in significant business income losses. Commercial property forms exclude damage to autos, but do they exclude any resulting business income loss? Read on...
In our 'Top 10 Reasons to Buy the Rental Car CDW' and 'Rental Cars and Diminution of Value' articles, we give many reasons for advising clients to buy the rental car company's CDW. This is the case in most states, but here is some advice for New York from our state association.
A Business Auto Policy was written with Collision and Specified Causes of Loss coverage. The insured struck a deer and the adjuster denied the claim on the basis that, since the policy lacked comprehensive coverage, there was no coverage for striking an animal. Is this correct?
An insured owns and operates a truck with a snow plow. While detached in his yard, the plow was damaged by a tree uprooted in a windstorm. The truck is insured on a BAP with collision and comprehensive coverage and the cost new of the vehicle included the value of the plow. The insurer has denied the claim saying the BAP doesn't cover detached equipment the plow should have a floater on it when detached. What do you think?
You're quoting a business with a BOP that has Hired/Nonowned Auto coverage. The business purchases three trailers to take to job sites and trade shows. The trailers will be hauled by one of the three business owners who has a Personal Auto Policy (PAP). The current agent says the trailers are covered by the PAP and the H/NO BOP coverage since the business doesn't own them. Do you agree?
Under a Business Auto Policy (BAP), liability coverage for the business can be extended to employee-owned autos using Symbols 1 or 9 and the employees can be covered as insureds by endorsement. However, what if an employer, as a perk or out of a sense of obligation, wants to extend coverage under the BAP to employees if they damage their own vehicles while on business?
Your insured's auto is totaled by a negligent driver. The at-fault party's insurer has agreed to compensate your insured's loss of value. However, in purchasing a replacement vehicle, the insurer refuses to pay the sales tax. Do the PAP or BAP liability coverages include sales tax? What about the physical damage coverages?
If an employee rents a car on a business trip, is this a Symbol 8 (hired) or Symbol 9 (nonowned) exposure? Under an unendorsed BAP, it depends on who is technically hiring the auto...the employer or the employee. This governs whether the employer and employee are covered or not under the BAP. In addition, if the employee has a PAP, which is primary, the PAP or BAP? To learn more about this problem (and a solution), keep reading....
A vehicle was damaged, including the attached permanently-mounted tool box, welder and generator. The adjuster denied the claim stating that the attached equipment was not a part of the original vehicle and therefore not covered. Is that correct?