Understanding Common Commercial Auto Exclusions

Understanding Common Commercial Auto Exclusions
Almost any business that owns one or more vehicles needs to invest in commercial auto insurance, and if you need to insure a large fleet of heavy duty vehicles, comprehensive fleet insurance may be your wisest option.
You can add riders to your commercial auto policy to cover some of these exclusions, and others are coverable under a commercial general liability policy. Either way, you need to be aware of potential exclusions in your commercial car insurance so you can find the best way to plug up these “gaps” if you feel they are too risky.

Expected/Intentional Injuries or Property Damage
Commercial auto covers bodily injury and property damage liability, but not if it was done intentionally. Accidents only are covered, as with other insurance types.

An employee’s “road rage” incident or other intentional collision, would subject him/her to personal liability but it won’t be covered on any car insurance policy.

An example of expected injury/property damage exclusions would be the results of racing or “war” using company vehicles. Only “normal” use is covered, not high-risk, irresponsible use that any reasonable person would know is likely to result in an accident.

Contractual Liability Exclusions
In construction businesses, but in some other industries as well, subcontractors often must agree to carry liability for injury and property damage to their employees that might otherwise fall on the general contractor.

In order to be approved for the job, these kinds of liability clauses are typically required in the contract.

If you have a contractual liability, it won’t generally be covered under you commercial auto policy as well, unless you arrange for this kind of additional coverage.

Workers Compensation Exclusions
In most cases, an on the job injury involving an automobile would be covered under Florida workers compensation insurance.

It’s possible that some compensation from your commercial auto policy will apply to the same injury or property damage resulting from the same incident, which workers comp applies to.

BUT, the exclusionary element is this: commercial auto isn’t going to pay for the exact same benefits that workers comp covers. There won’t be any “double dipping” function, so to speak, of the two insurance policies working in tandem.

Also excluded is a claim made by one of your employees against a fellow employee for an on the job injury.

Other Common Exclusions
Your auto policy will likely cover any injury or damage occurring due to property being hauled or that is in process of being loaded or unloaded. But “handling” of property before or after loading/unloaded won’t be covered. The exact definitions of when property loading/unloading has precisely begun or ended varies from state to state or even from insurer to insurer, so be sure to inquire about this.

Claims arising from accidents occurring while property is being moved by a mechanical device not attached to the insured vehicle are typically excluded, while such claims are allowed when the device was attached to the vehicle.

Damage from operation of mobile equipment or from “completed operations” is usually excluded, but is covered under most commercial general liability policies.

Damage or injury from pollution is excluded from commercial auto coverage, unless you purchase a rider to have in included.

Knowing exactly where your policy’s limits begin and end and how to supplement any gaps that would exist from a “standard” policy will help you minimize risks. Learn more by contacting Flagler County Insurance Agency today with all your important questions about commercial auto insurance.