Partners' Automobiles

Coverage for the Partnership and the Partners

Summary: Prior to the 1987 introduction of the simplified commercial auto coverage forms, whenever a business auto policy (BAP) covering nonowned auto liability was issued to a partnership, the Insurance Services Office (ISO) guidelines called for an alteration to be made to the policy. This consisted of a mandatory endorsement to exclude the partnership's vicarious liability coverage for use of an individual partner's auto on partnership business; the coverage was excluded with the proviso that the insured partnership could buy it back for additional premium. Under the simplified program introduced in 1987, this procedure was replaced by nonowned auto liability coverage if symbol 9 is chosen on the business auto coverage form, CA 00 01. Symbol 9 automatically gives the named insured partnership liability coverage for autos owned by the partners while used in the business of the named insured. A question remains, though, as to coverage for the partners themselves. Does the partnership's BAP extend coverage to the partners while they are driving their own cars? This article explores the issue.