Business Auto Policy Auto Coverage

[MLL]

What are the differences in coverage on a BAP between the #1 Any Auto and the #7 Scheduled Autos Only? I want to know what benefits the insured would have if they had #1 Any Auto coverage over #7 Scheduled Autos?
I'm in a No-Fault state (MI) the insured wants to have #1 coverage, but the company I want to place the policy with only writes #7 coverage, and I don't know how to explain to him why? Does he need #1 coverage?

I realize this is a very basic question, and I could be reading more into this than I should, but I'm having trouble explaining the differences to my client. I feel theres something more I should be explaining to him. I'm still getting my feet wet with the commercial side of insurance and that's probably why I'm feeling so uncomfortable, but the client has requested #1 coverage, because another agent told him it was better coverage.
I don't always get the basic answers that i'm looking for from the underwriters. I need a little "understanding"!
Any suggested tools for these types of inquiries would also be helpful?
Like I mentioned before I'm a beginner in the commercial end and I do not have a mentor to help with the basics, fundamentals and why's we do things. Any help would be greatly appreciated.

[InsAgentSF]

"Symbol 1 for liability in a BAP would create automatic coverage for any number of vehicles newly acquired during the policy year, even if such vehicles had never been reported to the carrier. "

Here is the article. http://www.allbusiness.com/management/3588595-1.html

[MLL]

Thank you InsAgentSF. This article helped.
So some things mean exactly as they read! Thanks, again.

[Forum Reader]

When using symbol 1, not only are unscheduled owned autos covered, but also Hired/Borrowed and Non-owned autos that are being used on the business' behalf. It truly means "any auto." No ownership required - no listing on policy required.

Symbol 1 is a liability symbol.

[Dilbert]

Depending on the named insured on the policy (single proprietor v partnership/llc) any auto may also cover his personal vehicles as well as those meant to be included on the policy. If you use symbol "1" to cover a plumber's commercial vans, you may also be covering his antique corvette as well.

[darnovak]

Your carrier(s) should provide online access to a specimen BAP (business auto policy) or CAP (commercial auto policy). There is a "decoder" page for all of the symbols used which provides the definitions. As a member of the "stone age" school, I still maintain hard copies of many types of policy declarations pages, forms, and endorsements so I know exactly what I am selling. I have almost all of the ISO forms and endorsements, but many carriers use their own custom filed forms and endorsements so you are going to have to dig, research, and scavenge to come up with a decent policy reference library. That's just the first step. One of the next steps is to try and guess the underwriting requirements of your carriers without an underwriting guide (which used to be in the nice big manuals we had in our agencies). Sometimes, if you ask them real nice (beg), they might enlighten you a wee bit. Another step on the way to becoming a real agent/broker is to read the policies so you understand the basic policy setup, how it is ordered, coverage triggers, schedules, etc. And this is just one line of insurance! It will be a long but rewarding journey because you will be one of the few agents/brokers out there that will know what your customers are purchasing. Or you can be like most of the clowns in the industry today and wait until a loss occurs - then wait for the claim denial and find out the easy way. Regards,
Dar Novak AAI

[MLL]

I guess I don't understand why a company would want to use Symbol 1...it doesn't seem like any of my companies audit the BAP and like DIlbert and ForumReader said, they would be covering any and all vehicles own or non owned. So why should I have my insured have a personal auto policy too? Besides the comp and collision.

The company i want to write him with does not like to write #1 but will consider on a case by case, however if Symbol 1 is an ISO form coverage, wouldn't all companies have to write if the agent/insured requested it?

[Forum Reader]

"Underwriting" is evaluating risk to see if the insurer wants to undertake and if so, at what price. Any carrier may decline to write symbol 1 if it represents a risk they don't want to take. There are questions on apps about whether there are any other vehicles titled in the name of the Named Insured that are not listed on the policy. Typically they will not offer symbol 1 if the answer is yes.

Whether or not they audit is up to them. Sometimes they do, sometimes they do not - depends on the type of account and how you've answered the application questions. There is a premium charged an inception for non-owned and hired autos if you request symbol 1. For non-owned and hired, the coverage is excess over the vehicle-owner's insurance.

[yoyowordup]

Be careful with the definitions for SYM1 coverage. Auto-Owners compares their "Combined Liability" to SYM1 coverage but it only covers ANY AUTO subject to several requirements.