Commercial automobiles – Hired Auto vs. Non-Owned Auto Coverage

Commercial automobiles in Class 1, emergency commercial automobiles in Glass 2 and private ambulances and private fire fighting apparatus in Class 4 shall not be included in the coverage granted under this rule, nor shall such automobiles be included in the “five or more” necessary to qualify a risk.

The “Omnibus Coverage” when extended under this rule shall not apply to public automobiles, automobiles owned by garages, automobile service stations, automobile sales agencies, or automobile manufacturers.
Coverage shall be granted in accordance with the details and provisions of an endorsement to the following effect. It should be noted that the following endorsement is drawn up for commercial cars only; if public automobiles are to be covered, the endorsement must be amended accordingly.

“In consideration of the premium determined as hereinafter provided for, it is hereby understood and agreed by and between the Company and the named assured that this policy shall cover the operation of all commercial auto-mobiles and trailers owned by the assured during the term of this insurance and used for the purposes stated therein, without a specific premium charge for each automobile to be covered as required by the terms of the policy.

“The named assured agrees that the schedule attached to this policy contains a complete description (including name, factory or engine number, year model, load capacity or seating capacity, etc.) of all automobiles and trailers owned by him at the inception of the policy and also states the territory in which each automobile or trailer is garaged -ft and used and further agrees that the policy discloses the average number of chauffeurs to be employed during the policy period.

“The named assured shall, upon delivery of the policy, pay to the company an advance premium for Public Liability, Property Damage and Collision insurance equal to the premium derived by multiplying the average rates shown in the schedule by the estimated number of chauffeurs and other operators of automobiles to be employed during the policy period, plus the premium derived by multiplying the average rates shown in the schedule by one-half the number of automobiles owned by the named assured in excess of the number of estimated chauffeurs and other operators of automobiles.


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