Personal Auto Insured on BAP—Who Is an Insured?

 

Our policyholder is a corporation. There is a fleet of several vehicles insured on it. One of the vehicles is titled to John Doe, who owns the corporation. However, the insured never shared that information.

If John Doe is involved in a liability claim while using that vehicle for personal use, would he have coverage under the BAP for him as an individual? Would the corporation have coverage?

Colorado Insured

This answer is written under the assumption that the vehicle in question is a covered auto for purposes of the BAP. This would be accomplished through, for broadest coverage, a symbol 1 for liability purposes.

If the auto is a covered auto, then the named insured corporation is an insured for liability purposes in the situation you described. However, the owner is not an insured because of the exception on the policy that states that the owner or anyone else from whom the named insured (corporation) hires or borrows a covered auto is not considered an insured.

The owner of the vehicle would have to be endorsed onto the BAP as an insured in order to have liability coverage for the use of the auto. This may be accomplished with the use of CA 99 17, individual named insured endorsement. See Drive Other Car Coverages for additional information on this topic.

 

 

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