The business auto coverage form is the predominant form for firms insuring their automobile exposures. In auditing an insured under this form—or the related garage and truckers policies of Insurance Services Office (ISO)—careful attention must be given to the numerical symbols listed in the policy declarations to signal which autos are insured for the various coverages. What would seem merely to be a small clerical oversight in entering these symbols could have grave consequences for the insured.

Naturally, the numerical symbols cannot be checked until the coverage needs and preferences of the insured are known. The checklist that follows is chiefly concerned with discovering these coverage needs. (The actual translation of coverage needs into the proper symbols is treated in the Casualty volume of this service; see Business Auto Form for information on the business auto symbols; see Garage Policy for garage form symbols; and see Truckers Coverage Form for the truckers coverage form symbols.) Some commercial accounts, of course, are insured through policies that use devices other than the ISO numerical symbols to key coverage. It is equally important to check for the correctness of those policies' declarations.

In this checklist, each of the common automobile coverages—liability, medical payments, uninsured motorists, no-fault, and physical damage—is taken up in turn, largely within the context of the business auto policy. However, most items apply equally to the comparable coverages of the garage and truckers policies and, for that matter, the nonstandard versions of each — although any nonstandard policy should be carefully examined for variations from standard provisions. Some checklist items give additional attention to the automobile insurance needs of specialized businesses—garages, transportation firms, automobile dealers, etc. As to firms insured under the garage policy, this checklist is concerned only with automobile exposures as can be insured under that policy; the premises liability exposures are not discussed in this article.

Commercial Auto Coverage Checklist – General Information-

Named Insured_________________________________

D/B/A________________________________________

Address________________________________________

City, State, ZIP__________________________________

Phone_________________________________________

Fax___________________________________________

Named Insured is a(n):            ____Individual          ___Partnership           ____Corporation        ____Limited Liability Corporation____Joint Venture ____Other

General business operations_________________________________________________

States/territories in which insured has operations________________________________

Loss control contact name/phone____________________________________________

Liability Coverage

____1. Are all owned autos (and those under long term lease) described in the policy? (This is especially important when coverage is arranged for “specifically described autos only.)

____2. If insured does not have “any auto” symbol liability coverage, is insurance company willing to provide this type of coverage? Does insured understand the arrangement?

____3. Is a deductible advantageous for the insured?

____4. Any leased autos? If so, does lease stipulate any insurance requirements not provided by existing insurance?

____5. Any possibility of short term rental or borrowed autos? Even if this seems unlikely, hired autos coverage on an “if any” basis should be urged.

____6. Do employees, partners, or other agents use their own autos on company business? Even the possibility calls for nonownership liability coverage.

____7. Do any leased employees or temporary workers use their own autos on company business?

____8. Are driving records and driving history for all drivers checked?    

____9. Is named insured an individual? If so, are spouse and family members to be considered as insureds?

____10. If named insured is a partnership, are any individually owned cars used in business?

____11. Do insured's employees drive customers' cars or provide valet parking? If so, garagekeepers insurance is appropriate, even if the insured is not a “garage” risk.

____12. If garagekeepers insurance is indicated, what basis is preferable: legal liability, direct primary, or direct excess?

____13. Has insured assumed any automobile exposures of others, via hold harmless agreements, that are not covered by insured's automobile liability insurance? Separate contractual liability insurance may be needed.

____14. Have any rating bases changed? Especially vehicle size, radius, and use classes, and, in case of nonownership liability coverage, number of employees.

____15. Compare definition of mobile equipment in insured's auto policy with that in insured's general liability policy. Make sure there are no resulting coverage gaps with respect to any equipment owned or used by the insured, particularly equipment mounted on an auto or truck to afford mobility.

____16. Stress advantages of having automobile and general liability insurance through same insurer.

____17. If insured is a dealer garage risk, check desirability of expanded liability coverage for customers and liability coverage for repossessed autos.

____18. If insured is a trucker risk (i.e., transports materials or commodities for others): a) are proper policy provisions being used (e.g., truckers policy)? b) is trailer interchange insurance needed? c) is coverage for “bobtail” or “deadhead” operations needed? d) do policy limits meet current state and federal insurance requirements, if applicable?

____19. Does insured have pollution liability exposures that would be excluded by basic policy provisions? If so, obtain appropriate coverage through either limited coverage buyback endorsement or broader pollution liability policy.

____20. Is insured a funeral director; law enforcement agency; ambulance service; fire department; leasing or rental concern; driver training program or school; automobile body manufacturer or installer; or driveaway contractor? If so, special rules, rates, and forms may apply. See “special types” section in automobile rules of commercial lines manual.