Physical damage has three principal coverages:
Comprehensive – covers un-excluded loss other than collision or overturn
Specified Causes of Loss – Alternative to Comprehensive, insures for specified perils of fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief vandalism, or sinking, burning, collision or derailment of a conveying transport
Collision- covers collision with another object or vehicle or overturn
Drive Other Car Coverage- This endorsement covers persons named therein (including their spouses) for use of automobiles that are not covered under the plan or they do not own. Without this endorsement, there would be no BAP coverage provided for an employee’s personal use of a rental car while on vacation.
RATING- Trucks and trailer equipment are rated based on territory where they are garaged, the radius of operation, the size or type, and the business use. For Physical Damage coverages, the original cost new and the vehicle age are also considered.
Trucks that operate within a radius of 50 miles are called local and take the lowest rates. Over 50 to 200 miles is called “intermediate” and over 200 miles is “long distance”.
Business use is divided up into 3 categories – Retail, Service, and Commercial. Retail use is for vehicles used to deliver goods and merchandise to individual homes. Service use is for vehicles that go from job site to job site. An example of Service use would be electricians, painters, plumbers and artesian contractors. Vehicles used for purposes other than those qualifying as Retail or Service are classified Commercial.
Rates increase for size and weight of trucks. The categories of light, medium, heavy and extra heavy exist. Truck-tractors, dumping types and different trailer types also have their own classes. Trucks in some use classes are differentiated in rating including some that deliver food, or have specialized time constraints, waste disposal, farming, dumping and concrete-mixing and those who haul for others are all various types.
Buses are rated by passenger capacity. If non-owned autos are included, the premium is based on a rate per employee. A policy that includes coverage for hired autos, charges a premium per $100 cost of hire.