Be Aware of Auto Policy Exclusions

Business auto policies have exclusions that limit coverage. Be aware of the exclusions and compensate for them. The top five are:

  • There is no coverage for injuries to your employees arising out of the use of a covered business auto. This makes workers’ compensation insurance not just a luxury but a necessity.
  • There is no coverage for personal property in your care, custody and control. This is because a property policy typically covers personal property. Business auto policies are liability policies and cover bodily injury and property damage to others.
  • In what is known as the “loading and unloading” exclusion, the business auto policy covers events that occur only during the actual delivery or pickup of property.
  • There is no coverage for pollution losses arising from any pollutants transported, towed or handled by the insured except for pollution stemming from the covered auto’s fuel source and oils or fluids necessary to operate the covered auto. If, however, your insured vehicle hits some other organization’s tanker truck, spilling the tanker’s hazardous cargo, there is coverage for that type of pollution loss.
  • There is no specific coverage for bodily injury or property damage caused by your operation of cherry pickers or similar devices mounted on an auto or truck chassis and used to raise or lower workers. When using this type equipment, your general liability policy usually covers any loss.

Your insurance professional can show you how to fill these exclusion gaps.