Auto Insurance Definitions

Business Auto Glossary

Accident:
An unforeseen and unplanned event on the part of the insured.

Appraisal:
The process by which the amount of physical damage loss on a covered auto is decided.

Collision:
The covered auto’s collision with another object or its overturn.

Comprehensive Coverage:
Any cause of loss except collision.

Concealment, Misrepresentation Or Fraud:
Actions on the part of the insured that allow the insurer to void coverage.

Coverage Territory:
The U.S., its territories and possessions, Puerto Rico, and Canada.

Covered Pollution Cost Or Expense:
Any cost or expense arising out of any request, demand or order demanding that the insured cleanup or respond to the effects of pollutants.

Deductible:
The amount that the insured is responsible for in the event of a loss.

Designated Insured:
A certain person or organization scheduled as an insured on an endorsement for liability coverage.

Designation Symbol:
Any of nine numerical symbols used on the BAP to designate a covered auto.

Diminution In Value:
The loss of value for a damaged auto after that vehicle has been repaired.

Direct Loss:
Auto physical damage loss that does not include loss of use of the auto.

Drive Other Car Coverage:
Insurance coverage for the driver of an auto that is not owned by either the driver or the named insured.

Drive-Away Contractors:
An individual or company hired by an auto dealer to drive cars from point A to point B.

Duties Of The Insured:
The list of steps the insured must take after a claim or loss to assist the insurer in settling the claim or loss.

Exclusion:
Sets out certain circumstances under which liability coverage is precluded.

Hired Autos:
Autos that the named insured leases, hires, rents, or borrows.

Insured:
Any person or organization qualifying as an insured in the who is an insured clauses of the BAP.

Leased Worker:
A person leased to the named insured by a labor leasing firm.

Limit Of Insurance:
The most the insurer will pay for the total of all damages and covered pollution cost or expense combined.

Loss:
Direct and accidental loss or damage to a covered auto.

Nonowned Autos:
Autos that the named insured does not own, lease, hire, rent, or borrow that are used in connection with the named insured’s business.

Other Insurance:
Coverage for the covered auto on another insurance policy.

Pollutant:
Any solid, liquid, gaseous, or thermal irritant or contaminant.

Private Passenger Auto:
A four-wheel auto of the private passenger or station wagon type, including a pickup, panel truck, or van not used for business.

Property Damage:
Damage to or loss of use of tangible property, in contrast to the direct loss definition.

Rolling Store:
A vehicle used as a mobile snack bar or lunch van, bringing products to customers.

Snowmobile:
A land motor vehicle that is designed for use on ice and snow and mainly off public roads.

Subrogation:
A right of the insurer to recover damages from another if the insurer has paid those damages for a covered loss.

Supplementary Payments:
Payments made by the insurer in addition to the limit of insurance.

Temporary Substitute Auto:
An auto not owned by the named insured while used as a temporary substitute for a covered auto owned by the named insured that is out of service.

Temporary Transportation Expenses:
Expenses incurred by the insured to rent or borrow a car because the covered auto has been stolen.

Temporary Worker:
A worker furnished to the named insured for a finite time period to supplement the regular workforce under special work situations.

Category: Auto Insurance