ONCE AND FOR ALL – EMPLOYEES, THEIR PERSONAL AUTOS, AND THE BAP By Kevin C. Amrhein, CIC With the first page of its policy form listing an array of coverage symbols, the ISO Business Auto Coverage Form distinguishes itself off the bat as a unique and challenging read. Agents often struggle to explain these symbols to insureds who struggle to make sense of them, especially as their fleets grow and coverage needs evolve. Agents who manage to navigate these choppy waters and leave their insureds with a clear understanding of symbols are primed to coast through the remainder of the form, explain limitations, and alleviate concerns, right? Right?!
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Every time I teach this form, at least a few agents in my classes are surprised to learn about a limitation applicable to employees while driving personally owned autos. When I explain the limitation, folks often express frustration in their inability to locate it in the Exclusions section of the policy (hint – it’s not there). As further evidence of confusion, other agents think the coverage symbols are the key to addressing this limitation. This lack of understanding inspired me to write this article with the hope that, once and for all, agents will 1) clearly spot the limitation in the policy, 2) clearly explain it to an insured, and 3) clearly DECEMBER 2020
identify a solution if such is desired by the insured. THE LIMITATION – WHERE THE $%^! IS IT? When presented with a coverage inquiry, many agents will review the Declarations page and the Exclusions section, skipping all information between (there’s no need to explain why this approach is problematic). Agents who read the policy correctly (e.g. in order) should clearly see that the limitation in question appears in SECTION II, Part A.1. – Who Is An Insured (portions included here):
