1. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Business Auto Policy Five Key Issues 1  The webinar will begin shortly.  There is no audio at this time.  This presentation is being recorded for your viewing pleasure at a future date.  The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right.  The PowerPoint presentation is also available under ‘Materials’.  You will receive the course number for your state near the end of class.  Use the ‘chat’ window for questions on the content.  100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls.

2. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Welcome to your Insurance Community University All of you are currently on mute – Un-mute your own system – Telephone Option Select Telephone on your screen Dial in the PIN number so that your number becomes active – Microphone and/or Speaker Option You can use this option if you have a headset that you use with your computer 2 Audio

3. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Participation & Chat Window You will receive information from the monitor via the ‘Chat’ window. – Please locate window in the control panel Q & A is welcomed during the presentation and at the end of the presentation You will find the question box on your control panel – Write your question in that box and send it to the presenter/organizer The presenter will take those questions in the order submitted 3

4. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! DOI Requirements When you see a slide with the hand up symbol, touch the “hand” icon on your control panel – Click ONCE only If you do not raise your hand, the monitor will be in contact with you in the chat box If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times 4 = Hand is down

5. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Polling Throughout the class we will be conducting periodic polls We need 100% participation on the polls The polls are intended to check participation but also to create discussion topics throughout the presentation 5

6. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! DOI Requirements We will file your hours with the DOI after the completion of this webinar and we have received the attendance form. You have 48 hours to return the form You will be sent a Certificate of Attendance/Completion by email. Please retain this for your records for five years. 6

7. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is intended as a general guideline and any interpretations provided by Insight do not modify or revise insurance policy language. The authors of these materials, Insight Insurance Consultants is a division of Insight Consulting and Management Inc. In providing these materials, Insight assumes neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright 2010 – 2012 All Rights Reserved www.insurancecommunitycenter.com Laurie: 714.803.5830 laurie@insurancecommunitycenter.comlaurie@insurancecommunitycenter.com Marjorie: 714.206.9583 Marjorie@insurancecommunitycenter.com Marjorie@insurancecommunitycenter.com 7

8. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Your Instructor Today Al Parizo, AFIS, CISC Looking for his car in the RMNP parking lot. Has anybody seen my keys? 8

9. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What This Course Will Cover 1.Background on the Business Auto Policy including eligibility and exclusionary language in the CGL 2.Mobile Equipment vs. BAP 3.Review of the coverage parts of the BAP including-- Who is the “insured” on a BAP and who is NOT an “insured”

10. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What This Course Will Cover 4.Proper Use of Symbols 5.Endorsements

11. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Background on the Business Auto Policy including eligibility and exclusionary language in the CGL Auto Exposures

12. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! BAP Eligibility All businesses including body shops, repair, parking except: Garage risks Auto Dealers Motor carrier Hauls for of their own and of others Sole proprietor eligible but has personal auto option (not necessarily a good option) 12

13. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Eligible Vehicles Any land vehicle designed for use on public roads Motorcycle Private passenger vehicle Truck / Tractor/trailer units 13

14. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 14 Auto Use, Classification and Premium Development

15. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Classifying Vehicles Establishes rating factors to charge proper premium Vehicle weight Gross vehicle weight (GVW) – maximum loaded weight Gross combined weight (GCW) – used for multi-unit vehicles Garaging locations 15

16. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Classifying Vehicles Radius Class Determine radius on a straight line from the street address of principal garaging Local - up to 50 Miles Intermediate - 51 to 200 Miles Long Distance - over 200 Miles 16

17. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Vehicle use Personal Service Use: Autos used for transporting the insured's personnel, tools, equipment and incidental supplies to or from a job location. Commercial 17

18. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Vehicle use Retail Use: Autos used to pick up property from, or deliver property to individual households. Commercial Use: Autos used for transporting property other than those autos defined as service or retail. 18

19. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Rating Physical Damage Age of Vehicle Value of the Vehicle Usage, radius, garaging location 19

20. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 20 Business Auto Policy Structure

21. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Policy Documents Common Policy Declarations Common Policy Conditions BAP Declarations Pages 21

22. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Coverage Specific Documents Added Business Auto Coverage Form (CA 00 01) Endorsements 22

23. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Business Auto Declarations (CA DS 03)  Used to synopsize the coverages provided on the policy  Named Insured and Mailing Address  Policy number and period of coverage  Coverage forms and endorsements included  Type of business  Garaging locations  Vehicle classifications 23

24. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Business Auto Declarations (CA DS 03) Three things trigger coverage Symbols – identifies autos that are covered autos Limit of Insurance Premium charged 24

25. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Eligible Vehicles Motorized Equipment subject to financial responsibility or other insurance laws Owned / Leased / Rented / Borrowed / Non-Owned 25

26. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 26 Available Coverages

27. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Liability Pays defense and damages when legally liable for ownership, maintenance or use of a covered auto Covers bodily injury or property damage to other persons or property Includes injury to passengers 27

28. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Liability Limits Single Limit, typically $1,000,000 Bodily injury Property damage Applies per accident 28

29. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Physical Damage to Covered Autos Loss of use of covered auto Collision Comprehensive / Specified Causes of Loss 29

30. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Coverages Added By Endorsement Bodily Injury from another party who is uninsured Match Liability Limits Uninsured Motorists Pays medical and funeral expenses to occupants of a covered auto $5,000 or $10,000 per person Medical Payments 30

31. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Auto Symbols Remember – these are used to trigger coverage Different symbols are used with the various coverages 31

32. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Purpose of Symbols Indicates which autos are covered autos for identified coverages Request on the application Verify policy issued with symbols as requested 32

33. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Autos  Symbol 1  Any auto  Used for liability coverage only  Always request this symbol as it provides the broadest coverage  Underwriter might not always provide  Next best – use Symbols 2, 8, 9 and 19 (you can ask for more than one or different ones in each coverage area) 33

34. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Autos  Symbol 2  Any owned auto  Used for liability, medical payments, uninsured / underinsured motorists and physical damage  Symbol 3  Any owned private passenger auto  Not a common symbol to use 34

35. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Autos  Symbol 4  Any owned auto other than private passenger  Not a common symbol to use  Symbol 5  Compulsory No-fault  Not used in California as we are not on a ‘no-fault’ system 35

36. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Autos Symbol 6  Compulsory Uninsured Motorists  Not used in California as insurance buyers are allowed to reject coverage – not recommended 36

37. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Autos Symbol 7  Any specified auto  Used for all coverages  Very restrictive symbol Symbol 8  Autos the named insured hires, rents or borrows 37

38. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Autos Symbol 9  Autos the named insured does not own, lease, hire, rent or borrow.  Must be used in connection with named insured’s business or personal affairs  Includes employee owned vehicles while being used in named insured’s business or personal affairs. 38

39. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Autos Symbol 19  Used for liability coverage  Covers any vehicle for liability when subject to motor vehicle insurance or financial responsibility laws  Example is a skip loader, backhoe, fork lift No need if using Symbol 1 for liability Always add if using Symbols other than 1 39

40. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Mobile Equipment or Auto? 40

41. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 41 Newly Acquired “Autos” Symbols 1, 2, 3, 4, 5, 6 Automatic Coverage for the policy period Recommend adding as soon as insured advises Must be added at renewal Any auto Symbol 7 Very Limited Coverage ONLY IF: Replaces a vehicle with that coverage OR All Owned Are Covered AND Notified Within 30 Days

42. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Auto Definition Land motor vehicle, trailer, semi-trailer, designed for travel on public roads Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. However, "auto" does not include "mobile equipment". 42

43. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! What Do You Think? 43

44. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Auto vs. Equipment 44 Designed to Provide Broad Coverage Mobile Equipment is Usually Covered Elsewhere Many States Regulate Equipment When on a Public Road Subject to Insurance Needs to be covered on a BAP Symbols as well as definition of “auto”

45. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Use and Coverage of Mobile Equipment BAP provides liability coverage when it is being used like an auto, subject to financial responsibility  Example: forklift on a public road subject to motor vehicle financial responsibility causes an accident. Separate Commercial General Liability policy provides coverage when the equipment is “working” vs. “travelling”. 45

46. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! This should be no problem 46

47. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! This could be! 47 What covered auto symbol could help?

48. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insureds – Policy Includes Named Insured(s) Permissive Drivers Including Employees Person or Organization that can be held liable for actions of covered persons 48

49. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Parties Not Covered Owner of hired or borrowed vehicleEmployee using their personally owned vehicleA ‘garage’ employee driving a covered auto A non-employee loading or unloading an insured vehicle A partner or LLC member using their personally owned vehicle 49

50. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 50 Liability Coverage

51. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insuring Agreement Duty to Defend Ends JudgmentSettlement Damages BI / PDCovered Pollution Accident Covered AutoCovered Insured Payment When Legally Liable DefenseDamages 51

52. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Pollution Cost Or Expense “Accident” must cause other BI or PDCovers clean up expenses Covered “auto” operational fluids or lubricants Other vehicle operational fluids or lubricants Other vehicle cargo spill 52

53. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Do you want Fries with that? Sticky situation: A truck carrying thousands of bottles of ketchup has crashed in Reno, Nevada, covering the freeway with the Heinz sauce

54. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Cleanup covered? Clear away: State transportation crews used snowplows to help clear the highway connecting Reno to Lake Tahoe

55. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Pollution Coverage  CA 99 48 extends “Covered Pollution” to include Cargo Cleanup.  Make this a “mandatory amendatory "endorsement when marketing BAP.  This is not complete Pollution and Remediation coverage!  Make Pollution coverage a required offer on your proposals. Environmental Underwriters are your new best friend. 55

56. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Some cargo deserves to be salvaged! 56

57. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Some is just plain fishy! 57

58. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Pollution Cost Or Expense Not Covered: Covered “auto” cargo spill Seepage or leakage with no “accident” “Accident” on named insured’s premises Prior to loading or after loading is completed 58

59. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Supplementary Payments In addition to the limit of liability Costs incurred by insurance company  Defense and court costs Out of state coverage  Follows the minimum requirements for each state if different than coverage shown

60. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Liability Exclusions Exclusions exist because: Should not or cannot be covered by insurance Another policy provides coverage 60

61. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Exclusions Workers’ Compensation / Employer’s Liability Covered elsewhere Contractual Liability Exception for liability assumed in an “insured contract” Expected Loss Insurance cannot cover 61

62. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Exclusions Handling of Property Excludes before and after movement into or onto auto Damage to Property Covered elsewhere Fellow Employee Endorsement Available 62

63. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Exclusions Completed Operations Covered elsewhere Operations Covered elsewhere Movement By Mechanical Device Coverage applies if attached to the auto 63

64. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Exclusions Racing Professional Event War Always excluded Pollution Exception for “covered pollution cost or expense” 64

65. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! 65 Physical Damage

66. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Coverage Applies for Covered Autos Very broad coverage If not excluded - covered Comprehensive Named Perils Avoid using Specified Causes of Loss Damage caused by accident, whether the insured’s fault or not Collision 66

67. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Coverage Extensions Transportation Expenses  Total theft of private passenger vehicle  $20 per day maximum of $600 for temporary transportation expense  48 hour deductible  Only if comprehensive / specified causes of loss coverage applies 67

68. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Coverage Extensions Loss of Use of Rental Vehicle  Same limit  Comp / specified causes of loss / collision  No time deductible 68

69. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Perils Exclusions Maintenance Wear and tear, mechanical, electrical, freezing blowouts Racing Professional event Nuclear Hazard / War Always excluded 69

70. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Restricted Property Tapes, records other media Excluded Electronic Equipment Excluded unless necessary for normal operation Permanentl y Installed Sound Equipment Covered 70

71. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Limit of Insurance Actual cash value Diminution of value excluded Cost to repair or replace Deductible applies per loss No deductible for fire / lightning losses under comprehensive coverage 71

72. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Duties and Conditions Report loss – notify authorities if required Cooperate Do not repair before insurance company can inspect 72

73. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Duties and Conditions Company has the choice of how to pay for damage Cannot waive subrogation rights after a loss Concealment of material fact can void coverage 73

74. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Covered Territory USA Puerto Rico Canada Covered During Transit Suit Brought in US, Puerto Rico or Canada Worldwide Fifty Days Hired without driver 74

75. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! *Tip! Limited World Wide Coverage  Recommend Foreign hired auto coverage. Responds to foreign locus.  BAP requires lawsuit to be brought back here. Not likely to happen! 75

76. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! International Auto Tips  Eliminate Fellow Employee Exclusion.  Amend “who is an insured” to include employees hiring or renting autos in insured’s name while conducting insured’s business.  Be sure to cover hired auto physical damage.  Use admitted carrier whenever possible. 76

77. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Additional Coverages: Medical Payments UM / UIM Added by Endorsement – but very common coverage

78. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Medical Payments Coverage Caused by “accident” to an “insured” Incurred within 3 years Pays reasonable expenses for medical and funeral services

79. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Who is an Insured Named insured “Family member” if named insured is individual Occupant of covered “auto”

80. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Medical Payments Exclusions Occupying as premises Owned by “family member” and auto excluded Employee injury Garage business War Non- permissive user

81. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Uninsured / Underinsured Motorists Coverage Pays for damages arising out the actions of an uninsured motorist that causes bodily injury to a covered person in a covered auto

82. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Why Should a Commercial Account Buy UM Coverage? Other coverage may not be available This coverage may fill some gaps In many states it is mandatory Covers when Workers’ Compensation coverage may not be available or is inadequate Many drivers do not carry auto liability insurance

83. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Why do Insureds Not Buy This Coverage? Usually cost The insured does not understand the coverage The insured believes it duplicates workers compensation Check with your agency management  This is often a requirement to provide this coverage, even though the customer can reject in writing

84. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Endorsements Used to change coverage in different sections of the policy 84

85. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! “Insured” Endorsements Individual Named Insured CA 99 17 Drive Other Car Coverage – Broadened Coverage For Named Individuals – CA 99 10 Employee Hired Autos – CA 20 54 Lessor – Additional Insured and Loss Payee – CA 20 01 85

86. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! “Insured” Endorsements Designated Insured – CA 20 48 Hired Auto Specified As Covered Auto You Own CA 99 16 Employee As Lessor – CA 99 47 Employees As Insureds – CA 99 33 86

87. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Additional Insured Issue:  A business partner of the insured wants to be added as Additional Insured to your insured’s auto policy Solution:  Provide the Designated Insured endorsement 87

88. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Leased Auto Issue:  Insured leases vehicles and the lessor wants the insured to provide primary coverage and to be named on the insured’s BAP Solution:  Use the Lessor – Additional Insured and Loss Payee endorsement to provide coverage 88

89. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Employees Lease To Your Insured Issue:  You insured has agreed to provide insurance on vehicles owned by employees and leased to your insured Solution:  Add the Employee as Lessor endorsement  This endorsement provides primary insurance and covers the employee 89

90. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Hired Autos Issue:  Insured hires vehicle and renting party requires that the insured provide primary insurance and name them on the insured’s auto policy. Solution:  Add Hired Autos Specified As Covered Autos You Own 90

91. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Employees Rent Cars Issue:  Your insured has employees that rent vehicles for business use. Solution:  Add Employee Hired Auto to cover the Physical Damage and clarify Liability coverage  For Liability coverage, Symbol 1 will cover the hired auto or Symbol 8 91

92. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! More Than One Employee In Vehicle Issue:  The insured has vehicles that may be occupied by two or more employees. Solution:  Add the Fellow Employee endorsement to provide coverage for an employee causing injury to fellow employee. 92

93. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! No Personal Auto Insurance Issue:  Your insured is a sole proprietorship and have no Personal Auto coverage Solution:  Add Individual Named Insured  Provide coverage similar to personal auto insurance  Name the individual and legal spouse 93

94. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! No Personal Auto Insurance Issue:  Insured is a Partnership, LLP, LLC or Corp  Owners or key employees use a company car and do not have Personal Auto coverage Solution:  Add Drive Other Car coverage  Covers the named persons when using a vehicle not connected to the business 94

95. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Employee Needs Liability Coverage Issue:  Your insured wants to provide coverage for an employee when operating a vehicle not owned, hired or borrowed by the insured. Solution:  Add the Employee as Insured endorsement  This endorsement is only providing Liability coverage 95

96. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Personal Use Vehicles Issue:  Your insured has personal use vehicles on the BAP that are covered for physical damage. Solution:  Add the Rental Reimbursement endorsement to provide coverage for a rental car for the insured to use if their covered auto is not usable due to a covered loss under physical damage. 96

97. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Pollution Issue:  The insured carries items that could be considered a pollutant. This in “normal” for Agricultural and Contracting accounts. Solution:  Add the Broadened Coverage endorsement CA 99 48  Covers clean up of spilled load carried by covered “auto”  Always use when adding MCS-90 97

98. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Summary The Business Auto Policy is one of the easier coverages to sell and service Just like any other type of insurance, however, it is not always easy to do so correctly Ask questions – never assume 98

99. Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing www.InsuranceCommunityCenter.com Find us on LinkedIn & Facebook! Upcoming Classes Upcoming University/Paid CE Classes FREE to University Members $50.00/charge for non university members 3/26Insight on Property Valuation Required by CA DOI 3/28Winery Insurance 99 Upcoming Community ClassesFREE to University Members $25.00/charge for non university members 4/4New Commercial Property Form 4/9Flood—What a MESS Join the University TODAY. www.insurancecommunitycenter.comwww.insurancecommunitycenter.com Click Join University at the top of the bar