Read the Business Auto Conditions - Section 4 - Business Auto Coverage Form (CA 00 01 10 13)
Business Auto Conditions - Section 4 - Business Auto Coverage Form
The ISO Business Auto Conditions - Section 4 - Business Auto Coverage Form is a part of the Business Auto Coverage Form. If you have a commercial auto policy, you should at least have a basic understand of what, where and who is covered & what, where and who is excluded and other important language in the Business Auto Conditions - Section 4 - Business Auto Coverage Form. The section starts below here:
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.
Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the company providing this insurance.
Other words and phrases that appear in quotation marks have special meaning. Refer to Section V - Definitions.
SECTION IV - BUSINESS AUTO CONDITIONS
The following conditions apply in addition to the Common Policy Conditions:
A. Loss Conditions
1. Appraisal For Physical Damage Loss - If you and we disagree on the amount of "loss", either may demand an appraisal of the "loss". In this event, each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire. The appraisers will state separately the actual cash value and amount of "loss". If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
- a. Pay its chosen appraiser; and
- b. Bear the other expenses of the appraisal and umpire equally.
If we submit to an appraisal, we will still retain our right to deny the claim.
2. Duties In The Event Of Accident, Claim, Suit Or Loss - We have no duty to provide coverage under this policy unless there has been full compliance with the following duties:
- a. In the event of "accident", claim, "suit" or "loss", you must give us or our authorized representative prompt notice of the "accident" or "loss". Include:
- How, when and where the "accident" or "loss" occurred;
- The "insured's" name and address; and
- To the extent possible, the names and addresses of any injured persons and witnesses.
- b. Additionally, you and any other involved "insured" must:
- Assume no obligation, make no payment or incur no expense without our consent, except at the "insured's" own cost.
- Immediately send us copies of any request, demand, order, notice, summons or legal paper received concerning the claim or "suit".
- Cooperate with us in the investigation or settlement of the claim or defense against the "suit".
- Authorize us to obtain medical records or other pertinent information.
- Submit to examination, at our expense, by physicians of our choice, as often as we reasonably require.
- c. If there is "loss" to a covered "auto" or its equipment, you must also do the following:
- Promptly notify the police if the covered "auto" or any of its equipment is stolen.
- Take all reasonable steps to protect the covered "auto" from further damage.
- Also keep a record of your expenses for consideration in the settlement of the claim.
- Permit us to inspect the covered "auto" and records proving the "loss" before its repair or disposition.
- Agree to examinations under oath at our request and give us a signed statement of your answers.
3. Legal Action Against Us - No one may bring a legal action against us under this Coverage Form until:
- a. There has been full compliance with all the terms of this Coverage Form; and
- b. Under Covered Autos Liability Coverage, we agree in writing that the "insured" has an obligation to pay or until the amount of that obligation has finally been determined by judgment after trial. No one has the right under this policy to bring us into an action to determine the "insured's" liability.
4. Loss Payment - Physical Damage Coverages - At our option, we may:
- a. Pay for, repair or replace damaged or stolen property;
- b. Return the stolen property, at our expense. We will pay for any damage that results to the "auto" from the theft; or
- c. Take all or any part of the damaged or stolen property at an agreed or appraised value.
If we pay for the "loss", our payment will include the applicable sales tax for the damaged or stolen property.
5. Transfer Of Rights Of Recovery Against Others To Us - If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us. That person or organization must do everything necessary to secure our rights and must do nothing after "accident" or "loss" to impair them.
B. General Conditions
1. Bankruptcy - Bankruptcy or insolvency of the "insured" or the "insured's" estate will not relieve us of any obligations under this Coverage Form.
2. Concealment, Misrepresentation Or Fraud - This Coverage Form is void in any case of fraud by you at any time as it relates to this Coverage Form. It is also void if you or any other "insured", at any time, intentionally conceals or misrepresents a material fact concerning:
- a. This Coverage Form;
- b. The covered "auto";
- c. Your interest in the covered "auto"; or
- d. A claim under this Coverage Form.
3. Liberalization - If we revise this Coverage Form to provide more coverage without additional premium charge, your policy will automatically provide the additional coverage as of the day the revision is effective in your state.
4. No Benefit To Bailee - Physical Damage Coverages - We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regardless of any other provision of this Coverage Form.
5. Other Insurance
- a. For any covered "auto" you own, this Coverage Form provides primary insurance. For any covered "auto" you don't own, the insurance provided by this Coverage Form is excess over any other
collectible insurance. However, while a covered "auto" which is a "trailer" is connected to another vehicle, the Covered Autos Liability Coverage this Coverage Form provides for the "trailer" is:
- Excess while it is connected to a motor vehicle you do not own; or
- Primary while it is connected to a covered "auto" you own.
- b. For Hired Auto Physical Damage Coverage, any covered "auto" you lease, hire, rent or borrow is deemed to be a covered "auto" you own. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto".
- c. Regardless of the provisions of Paragraph a. above, this Coverage Form's Covered Autos Liability Coverage is primary for any liability assumed under an "insured contract".
- d. When this Coverage Form and any other Coverage Form or policy covers on the same basis, either excess or primary, we will pay only our share. Our share is the proportion that the Limit of Insurance of our Coverage Form bears to the total of the limits of all the Coverage Forms and policies covering on the same basis.
6. Premium Audit
- a. The estimated premium for this Coverage Form is based on the exposures you told us you would have when this policy began. We will compute the final premium due when we determine your actual exposures. The estimated total premium will be credited against the final premium due and the first Named Insured will be billed for the balance, if any. The due date for the final premium or retrospective premium is the date shown as the due date on the bill. If the estimated total premium exceeds the final premium due, the first Named Insured will get a refund.
- b. If this policy is issued for more than one year, the premium for this Coverage Form will be computed annually based on our rates or premiums in effect at the beginning of each year of the policy.
7. Policy Period, Coverage Territory - Under this Coverage Form, we cover "accidents" and "losses" occurring:
- a. During the policy period shown in the Declarations; and
- b. Within the coverage territory. The coverage territory is:
- The United States of America;
- The territories and possessions of the United States of America;
- Puerto Rico;
- Canada; and
- Anywhere in the world if a covered "auto" of the private passenger type is leased, hired, rented or borrowed without a driver for a period of 30 days or less, provided that the "insured's" responsibility to pay damages is determined in a "suit" on the merits, in the United States of America, the territories and possessions of the United States of America, Puerto Rico or Canada, or in a settlement we agree to.
We also cover "loss" to, or "accidents" involving, a covered "auto" while being transported between any of these places.
8. Two Or More Coverage Forms Or Policies Issued By Us - If this Coverage Form and any other Coverage Form or policy issued to you by us or any company affiliated with us applies to the same "accident", the aggregate maximum Limit of Insurance under all the Coverage Forms or policies shall not exceed the highest applicable Limit of Insurance under any one Coverage Form or policy. This condition does not apply to any Coverage Form or policy issued by us or an affiliated company specifically to apply as excess insurance over this Coverage Form.
More On ISO Insurance Forms
You can download a copy of the entire form here: Business Auto Coverage Form.
You can find more ISO commercial auto insurance coverage forms here:
- Business Auto Coverage Form
Business Auto Conditions - Section 4 - Business Auto Coverage Form - The Bottom Line
We hope this article on the Business Auto Conditions - Section 4 - Business Auto Coverage Form has been informative. Because ISO forms are used by many insurance companies, a lot of the language they contain has already been by interpreted by the courts. Meanings have been established for specific words and phrases which can make claim settlements and litigation easier.