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.
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…
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…
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…
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?
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…
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?
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?
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…
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?
