Business Automobile Liability Insurance

This coverage insures against liability claims arising out of the contractor’s use
of automobiles. The symbol used in the policy defines the scope of cover. Below are
descriptions of automobile designation symbols quoted from standard language used
by insurers. Generally, you should require “Code 1”, which is the broadest code.

 

CODES USED IN BUSINESS AUTO POLICIES

1 = ANY AUTO.

2 = OWNED AUTOS ONLY.

Only those autos you own (and for liability coverage any trailers you don’t own while
attached to power units you own). This includes those autos you acquire ownership
of after the policy begins.

 

3 = OWNED PRIVATE PASSENGER AUTOS ONLY.

Only the private passenger autos you own. This includes those private passenger autos
you acquire ownership of after the policy begins.

 

4 = OWNED AUTOS OTHER THAN PRIVATE PASSENGER AUTOS.

Only those autos you own that are not of the private passenger type (and for liability
coverage, any trailers you don’t own while attached to power units you own). This
includes those autos not of the private passenger type you acquire ownership of after
the policy begins.

 

5 = OWNED AUTOS SUBJECT TO NO FAULT.

Only those autos you own that are required to have No?Fault benefits in the state
where they are licensed or principally garaged. This includes those autos you acquire
ownership of after the policy begins provided they are required to have No-Fault benefits
in the state where they are licensed or principally garaged.

 

6 = OWNED AUTOS SUBJECT TO A COMPULSORY UNINSURED MOTORISTS LAW.

Only those autos you own that because of the law in the state where they are licensed
or principally garaged, are required to have and cannot reject uninsured motorists
insurance. This includes autos you acquire ownership of after the policy begins provided
they are subject to the same state uninsured motorists requirement.

 

7 = SPECIFICALLY DESCRIBED AUTOS.

Only those autos described in ITEM THREE of the Declarations for which a premium charge
is shown (and for liability coverage any trailers you don’t own while attached to
any power unit described in ITEM THREE).

 

8 = HIRED AUTOS ONLY.

Only those autos you lease, hire, rent or borrow. This does not include any auto you
lease, hire, rent, or borrow from any of your employees or partners or members of
their households.

 

9 = NON-OWNED AUTOS ONLY.

Only those autos you do not own, lease, hire, rent, or borrow that are used in connection
with your business. This includes autos owned by your employees or partners or members
of their households but only while used in your business or your personal affairs.

Automobile coverage requirements should be waived only when the other party’s work
clearly does not involve the use of an automobile. Should any doubts exist, this coverage
should be required.