Physical Damage Coverage - Section 3
- Business Auto Coverage Form

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Read the Physical Damage Coverage - Section 3 - Business Auto Coverage Form (CA 00 01 10 13)

Physical Damage Coverage - Section 3 - Business Auto Coverage Form

Physical Damage Coverage - Section 3 - Business Auto Coverage Form

The ISO Physical Damage Coverage - Section 3 - 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 Physical Damage Coverage - Section 3 - 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 III - PHYSICAL DAMAGE COVERAGE

A. Coverage
  1. We will pay for "loss" to a covered "auto" or its equipment under:
    • a. Comprehensive Coverage From any cause except:
      1. The covered "auto's" collision with another object; or
      2. The covered "auto's" overturn.
    • b. Specified Causes Of Loss Coverage Caused by:
      1. Fire, lightning or explosion;
      2. Theft;
      3. Windstorm, hail or earthquake;
      4. Flood;
      5. Mischief or vandalism; or
      6. The sinking, burning, collision or derailment of any conveyance transporting the covered "auto".
    • c. Collision Coverage Caused by:
      1. The covered "auto's" collision with another object; or
      2. The covered "auto's" overturn.
  2. Towing - We will pay up to the limit shown in the Declarations for towing and labor costs incurred each time a covered "auto" of the private passenger type is disabled. However, the labor must be performed at the place of disablement.
  3. Glass Breakage - Hitting A Bird Or Animal - Falling Objects Or Missiles - If you carry Comprehensive Coverage for the damaged covered "auto", we will pay for the following under Comprehensive Coverage:
    • Glass breakage;
    • "Loss" caused by hitting a bird or animal; and
    • "Loss" caused by falling objects or missiles.
    • However, you have the option of having glass breakage caused by a covered "auto's" collision or overturn considered a "loss" under Collision Coverage.
  4. Coverage Extensions
    • Transportation Expenses - We will pay up to $20 per day, to a maximum of $600, for temporary transportation expense incurred by you because of the total theft of a covered "auto" of the private passenger type. We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes Of Loss Coverage. We will pay for temporary transportation expenses incurred during the period beginning 48 hours after the theft and ending, regardless of the policy's expiration, when the covered "auto" is returned to use or we pay for its "loss".
    • Loss Of Use Expenses For Hired Auto Physical Damage - we will pay expenses for which an "insured" becomes legally responsible to pay for loss of use of a vehicle rented or hired without a driver under a written rental contract or agreement. We will pay for loss of use expenses if caused by:
      1. Other than collision only if the Declarations indicates that Comprehensive Coverage is provided for any covered "auto";
      2. Specified Causes Of Loss only if the Declarations indicates that Specified Causes Of Loss Coverage is provided for any covered "auto"; or
      3. Collision only if the Declarations indicates that Collision Coverage is provided for any covered "auto".
      4. However, the most we will pay for any expenses for loss of use is $20 per day, to a maximum of $600.
B. Exclusions
  1. 1. We will not pay for "loss" caused by or resulting from any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss".
    • a. Nuclear Hazard
      1. The explosion of any weapon employing atomic fission or fusion; or
      2. Nuclear reaction or radiation, or radioactive contamination, however caused.
    • b. War Or Military Action
      1. War, including undeclared or civil war;
      2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or
      3. Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these.
  2. 2. We will not pay for "loss" to any covered "auto" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. We will also not pay for "loss" to any covered "auto" while that covered "auto" is being prepared for such a contest or activity.
  3. We will not pay for "loss" due and confined to:
    • a. Wear and tear, freezing, mechanical or electrical breakdown.
    • b. Blowouts, punctures or other road damage to tires.
    • This exclusion does not apply to such "loss" resulting from the total theft of a covered "auto".
  4. We will not pay for "loss" to any of the following:
    • a. Tapes, records, discs or other similar audio, visual or data electronic devices designed for use with audio, visual or data electronic equipment.
    • b. Any device designed or used to detect speed-measuring equipment, such as radar or laser detectors, and any jamming apparatus intended to elude or disrupt speed-measuring equipment.
    • c. Any electronic equipment, without regard to whether this equipment is permanently installed, that reproduces, receives or transmits audio, visual or data signals.
    • d. Any accessories used with the electronic equipment described in Paragraph c. above.
  5. Exclusions 4.c. and 4.d. do not apply to equipment designed to be operated solely by use of the power from the "auto's" electrical system that, at the time of "loss", is:
    • a. Permanently installed in or upon the covered "auto";
    • b. Removable from a housing unit which is permanently installed in or upon the covered "auto";
    • c. An integral part of the same unit housing any electronic equipment described in Paragraphs a. and b. above; or
    • d. Necessary for the normal operation of the covered "auto" or the monitoring of the covered "auto's" operating system.
  6. We will not pay for "loss" to a covered "auto" due to "diminution in value".
C. Limits Of Insurance
  1. The most we will pay for:
    • a. "Loss" to any one covered "auto" is the lesser of:
      1. The actual cash value of the damaged or stolen property as of the time of the "loss"; or
      2. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality.
    • b. All electronic equipment that reproduces, receives or transmits audio, visual or data signals in any one "loss" is $1,000, if, at the time of "loss", such electronic equipment is:
      1. Permanently installed in or upon the covered "auto" in a housing, opening or other location that is not normally used by the "auto" manufacturer for the installation of such equipment;
      2. Removable from a permanently installed housing unit as described in Paragraph b.(1) above; or
      3. An integral part of such equipment as described in Paragraphs b.(1) and b.(2) above.
  2. An adjustment for depreciation and physical condition will be made in determining actual cash value in the event of a total "loss".
  3. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment.
D. Deductible

For each covered "auto", our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by the applicable deductible shown in the Declarations. Any Comprehensive Coverage deductible shown in the Declarations does not apply to "loss" caused by fire or lightning.

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:

Physical Damage Coverage - Section 3 - Business Auto Coverage Form - The Bottom Line

We hope this article on the Physical Damage Coverage - Section 3 - 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.

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