Automobile and Garage Risks

Automobile Coverage Recommendations

The following are available under your automobile policy (Standard Automobile Policy /SPF 1). Your policy will outline the sections you currently carry:

Section A: Third Party Liability

Required by law. Section A must be on any vehicle that is being driven. Protects the driver against Bodily injury and Damage to Property of Others.

Section C: Covering physical damage to your automobile

The following coverages are available:

  • All Perils Coverage
    • Coverage for all incidents unless they are explicitly excluded in your policy wording.
  • Collision or Upset Coverage
    • Coverage for losses resulting from damages when a vehicle is involved in a collision with another object or rolls over.
  • Comprehensive Coverage
    • Coverage that helps pay to replace or repair your vehicle if it’s stolen or damaged in an incident that’s not a collision.
  • Specified Perils Coverage
    • Coverage is exactly what it sounds like: coverage for specific events that are outlined in your policy. This typically includes damage caused by things like fire, hail, lightning, theft, and earthquakes.

Depending on your operations, in addition to the standard auto policy, there are several common automobile endorsements that may need to be added to your policy. You may already see some of these outlined in your policy document, but we ask that you review the common automobile endorsements listed below and contact us if you wish to have an in-depth renewal review.

COMMON AUTOMOBILE ENDORSEMENTS

In the event of a loss, would you like coverage for a rental vehicle?

SEF 20 – Loss of Use/Transportation Replacement

This endorsement offers you reimbursement in the form of a rental vehicle in the event that your vehicle is not drivable due to an insurable loss. Provides specified dollar limit (per day) and a dollar limit per occurrence for reasonable expenses to rent a similar car, taxicab, or public transportation.

When you rent vehicles, would you like your policy to extend to protect the physical damage on the rental vehicle?

SEF 27 and 27B – Legal Liability for Damage to Non-Owned Automobiles

 When added to your automobile insurance policy, extends the physical damage coverage you currently carry on your personal vehicle, to a rental vehicle when you are away on vacation or business. You are covered for the actual cash value of the rental vehicle with the same physical damage deductibles that you carry on your personal vehicle. The SEF27 is for vehicles you rent for Personal use, the 27B is for vehicles that will be used for Business.

We’ve all heard your vehicle depreciates the moment you purchase it. Would you like to keep the purchase value of your new vehicle for at least two years?

SEF43/43R – Limited Waiver of Depreciation.

Waives depreciation on a new vehicle for a specified time period. Usually about 24-30 months.

In the event of a loss, would you want to be protected if you’re in an accident with someone who doesn’t have sufficient insurance?

Provides benefits to the Insured and family who claim for injury or death against another motorist who has insufficient insurance.

Are you carrying dangerous goods?

SEF 4a and SEF 4b – Permission to Carry Explosives and Permission to Carry Radioactive Materials

 Since transporting explosives and radioactive materials is excluded from the policy, permission must be obtained from the insurance company to carry such dangerous goods.

Are you leasing any of your vehicle(s) from a third party, or you are leasing your vehicles to others?

SEF 5 – Permission to Lease Automobile to Specified Lessee (over 30 days – long term leases)

Extends coverage to the lessee and the person operating the automobile with the lessee’s consent. It modifies several policy clauses to reflect the lessee’s interests.

SEF 5C – Permission to Lease Automobiles for less than 30 days. Short term rentals.

Similar to the SEF 5 endorsement, however, the difference is that this endorsement gives you permission to rent or lease vehicles to others. This endorsement does not extend coverage to the lessee.

Are you carrying passengers for compensation in your vehicle(s)?

SEF 6a, 6b, 6c and 6d – Permission to Carry Passengers for Compensation

Must be added when you are carrying passengers for compensation.

  • The SEF 6a is Used for Taxis, ambulances, Private Buses, or fellow employees to and from work, etc.
  • The SEF 6B is for School Bus purposes only.
  • The SEF 6C is for Public Buses, Charters, or Tour Busses.
  • The SEF 6D is for Driver Training Schools. Intended use must be shown on the form.

Garage Recommendations

The following are available under your automobile policy (Standard Automobile Policy /SPF 1). Your policy will outline the sections you currently carry:

Section A: Third Party Liability

Required by law. Section A must be on any vehicle that is being driven. Protects the driver against Bodily injury and Damage to Property of Others.

Section C: Covering physical damage to your automobile

The following coverages are available:

  • All Perils Coverage
    • Coverage for all incidents unless they are explicitly excluded in your policy wording.
  • Collision or Upset Coverage
    • Coverage for losses resulting from damages when a vehicle is involved in a collision with another object or rolls over.
  • Comprehensive Coverage
    • Coverage that helps pay to replace or repair your vehicle if it’s stolen or damaged in an incident that’s not a collision.
  • Specified Perils Coverage
    • Coverage is exactly what it sounds like: coverage for specific events that are outlined in your policy. This typically includes damage caused by things like fire, hail, lightning, theft, and earthquakes.

Depending on your operations, in addition to the standard auto policy, there are several common automobile endorsements that may need to be added to your policy. You may already see some of these outlined in your policy document, but we ask that you review the common automobile endorsements listed below and contact us if you wish to have an in-depth renewal review.

COMMON AUTOMOBILE ENDORSEMENTS

In the event of a loss, would you like coverage for a rental vehicle?

SEF 20 – Loss of Use/Transportation Replacement

This endorsement offers you reimbursement in the form of a rental vehicle in the event that your vehicle is not drivable due to an insurable loss. Provides specified dollar limit (per day) and a dollar limit per occurrence for reasonable expenses to rent a similar car, taxicab, or public transportation.

When you rent vehicles, would you like your policy to extend to protect the physical damage on the rental vehicle?

SEF 27 and 27B – Legal Liability for Damage to Non-Owned Automobiles

 When added to your automobile insurance policy, extends the physical damage coverage you currently carry on your personal vehicle, to a rental vehicle when you are away on vacation or business. You are covered for the actual cash value of the rental vehicle with the same physical damage deductibles that you carry on your personal vehicle. The SEF27 is for vehicles you rent for Personal use, the 27B is for vehicles that will be used for Business.

We’ve all heard your vehicle depreciates the moment you purchase it. Would you like to keep the purchase value of your new vehicle for at least two years?

SEF43/43R – Limited Waiver of Depreciation.

Waives depreciation on a new vehicle for a specified time period. Usually about 24-30 months.

In the event of a loss, would you want to be protected if you’re in an accident with someone who doesn’t have sufficient insurance?

Provides benefits to the Insured and family who claim for injury or death against another motorist who has insufficient insurance.

Are you carrying dangerous goods?

SEF 4a and SEF 4b – Permission to Carry Explosives and Permission to Carry Radioactive Materials

 Since transporting explosives and radioactive materials is excluded from the policy, permission must be obtained from the insurance company to carry such dangerous goods.

Are you leasing any of your vehicle(s) from a third party, or you are leasing your vehicles to others?

SEF 5 – Permission to Lease Automobile to Specified Lessee (over 30 days – long term leases)

Extends coverage to the lessee and the person operating the automobile with the lessee’s consent. It modifies several policy clauses to reflect the lessee’s interests.

SEF 5C – Permission to Lease Automobiles for less than 30 days. Short term rentals.

Similar to the SEF 5 endorsement, however, the difference is that this endorsement gives you permission to rent or lease vehicles to others. This endorsement does not extend coverage to the lessee.

Are you carrying passengers for compensation in your vehicle(s)?

SEF 6a, 6b, 6c and 6d – Permission to Carry Passengers for Compensation

Must be added when you are carrying passengers for compensation.

  • The SEF 6a is Used for Taxis, ambulances, Private Buses, or fellow employees to and from work, etc.
  • The SEF 6B is for School Bus purposes only.
  • The SEF 6C is for Public Buses, Charters, or Tour Busses.
  • The SEF 6D is for Driver Training Schools. Intended use must be shown on the form.

Do you own a Garage? Do you have vehicles owned by others under your care? Do you have employees who drive customers’ vehicles? If so, you need a Garage Liability Policy (SPF 4).

The Standard Automobile Policy (SPF1) excludes operations engaged in the selling, repairing, maintaining, storing, servicing, or parking of automobiles owned by others. The SPF4 (Garage Policy) is a specialized policy designed for when customer vehicles or non-owned vehicles are in your Care, Custody, and Control. Types of Automobiles covered by the SPF4 are as follows:

  • Customer Vehicles
  • Non owned Vehicles
  • Owned Vehicles

COMMON GARAGE (SPF4) ENDORSEMENTS TO ENHANCE YOUR GARAGE LIABILITY POLICY

Are you concerned with theft from your lot?

SEF 74/75: Open Lot Theft – Owned Automobiles/Customers Automobiles

Removes exclusion for partial theft from any open lot or unroofed space owned, rented, or controlled by you in connection with your business.

Do any members of your family operate your vehicle(s) but are not employees of your business?

SEF 76: Additional Insured – Broad Form

  • Extends coverage for vehicles on your schedule that you provide for the regular or frequent use by any person who is not an active partner or employee of your business
    • e. Spouse, son or daughter of the owner

Did you know if you damage a part of a customer vehicle that you are not working on, separate coverage is required?

SEF 77 – Legal Liability for Comprehensive Damage to Customers’ Automobiles (Including Open Lot Pilferage)

  • This Endorsement provides Comprehensive coverage to your Customer’s Vehicle when it is under your care.
  • Will also provide partial theft coverage
  • e.: If you were working on the inside of a client’s vehicle and accidentally damaged the leather on the seat. The damage to the seat would not be covered unless you had a SEF 77 on your policy.

Do you need physical damage coverage on your owned vehicles?

SEF 80 – Specified Owned Automobile Physical Damage

  • Allows you to put physical damage cover (collision, comprehensive and/or specified perils) on a vehicle that is owned by you on the vehicle schedule.

Do you want to ensure your family is covered in the event of a loss with a driver who isn’t sufficiently insured?

SEF 81 – Garage Family Protection

Provides benefits to the owner and family members who claim for injury or death against another motorist who has insufficient insurance.

Do you own a Garage? Do you have vehicles owned by others under your care? Do you have employees who drive customers’ vehicles? If so, you need a Garage Liability Policy (SPF 4).

The Standard Automobile Policy (SPF1) excludes operations engaged in the selling, repairing, maintaining, storing, servicing, or parking of automobiles owned by others. The SPF4 (Garage Policy) is a specialized policy designed for when customer vehicles or non-owned vehicles are in your Care, Custody, and Control. Types of Automobiles covered by the SPF4 are as follows:

  • Customer Vehicles
  • Non owned Vehicles
  • Owned Vehicles

COMMON GARAGE (SPF4) ENDORSEMENTS TO ENHANCE YOUR GARAGE LIABILITY POLICY

Are you concerned with theft from your lot?

SEF 74/75: Open Lot Theft – Owned Automobiles/Customers Automobiles

Removes exclusion for partial theft from any open lot or unroofed space owned, rented, or controlled by you in connection with your business.

Do any members of your family operate your vehicle(s) but are not employees of your business?

SEF 76: Additional Insured – Broad Form

  • Extends coverage for vehicles on your schedule that you provide for the regular or frequent use by any person who is not an active partner or employee of your business
    • e. Spouse, son or daughter of the owner

Did you know if you damage a part of a customer vehicle that you are not working on, separate coverage is required?

SEF 77 – Legal Liability for Comprehensive Damage to Customers’ Automobiles (Including Open Lot Pilferage)

  • This Endorsement provides Comprehensive coverage to your Customer’s Vehicle when it is under your care.
  • Will also provide partial theft coverage
  • e.: If you were working on the inside of a client’s vehicle and accidentally damaged the leather on the seat. The damage to the seat would not be covered unless you had a SEF 77 on your policy.

Do you need physical damage coverage on your owned vehicles?

SEF 80 – Specified Owned Automobile Physical Damage

  • Allows you to put physical damage cover (collision, comprehensive and/or specified perils) on a vehicle that is owned by you on the vehicle schedule.

Do you want to ensure your family is covered in the event of a loss with a driver who isn’t sufficiently insured?

SEF 81 – Garage Family Protection

Provides benefits to the owner and family members who claim for injury or death against another motorist who has insufficient insurance.

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Do you own a Garage? Do you have vehicles owned by others under your care? Do you have employees who drive customers’ vehicles? If so, you need a Garage Liability Policy (SPF 4).

The Standard Automobile Policy (SPF1) excludes operations engaged in the selling, repairing, maintaining, storing, servicing, or parking of automobiles owned by others. The SPF4 (Garage Policy) is a specialized policy designed for when customer vehicles or non-owned vehicles are in your Care, Custody, and Control. Types of Automobiles covered by the SPF4 are as follows:

  • Customer Vehicles
  • Non owned Vehicles
  • Owned Vehicles

COMMON GARAGE (SPF4) ENDORSEMENTS TO ENHANCE YOUR GARAGE LIABILITY POLICY

Are you concerned with theft from your lot?

SEF 74/75: Open Lot Theft – Owned Automobiles/Customers Automobiles

Removes exclusion for partial theft from any open lot or unroofed space owned, rented, or controlled by you in connection with your business.

Do any members of your family operate your vehicle(s) but are not employees of your business?

SEF 76: Additional Insured – Broad Form

  • Extends coverage for vehicles on your schedule that you provide for the regular or frequent use by any person who is not an active partner or employee of your business
    • e. Spouse, son or daughter of the owner

Did you know if you damage a part of a customer vehicle that you are not working on, separate coverage is required?

SEF 77 – Legal Liability for Comprehensive Damage to Customers’ Automobiles (Including Open Lot Pilferage)

  • This Endorsement provides Comprehensive coverage to your Customer’s Vehicle when it is under your care.
  • Will also provide partial theft coverage
  • e.: If you were working on the inside of a client’s vehicle and accidentally damaged the leather on the seat. The damage to the seat would not be covered unless you had a SEF 77 on your policy.

Do you need physical damage coverage on your owned vehicles?

SEF 80 – Specified Owned Automobile Physical Damage

  • Allows you to put physical damage cover (collision, comprehensive and/or specified perils) on a vehicle that is owned by you on the vehicle schedule.

Do you want to ensure your family is covered in the event of a loss with a driver who isn’t sufficiently insured?

SEF 81 – Garage Family Protection

Provides benefits to the owner and family members who claim for injury or death against another motorist who has insufficient insurance.