Introduction to the Business Auto Policy - CLEQ

Course Description
This course provides an introduction to the business automobile insurance policy (BAP), focusing on the standard coverage forms developed for this line by Insurance Services Office, Inc. (ISO). It examines some of the motor vehicle statutes, the public policy issues behind the statutes, and the effect of these statutes on various types of business auto coverages.

The course takes a broad look at some of the most common types of statutes, such as uninsured/underinsured motorist (UM/UIM) coverage and no-fault, and also some of the most common provisions of those statutes. A review of the policy’s declarations page is also considered at some length, especially as respects areas in which a clerical or typographical error could have serious negative impacts on coverage provided under the policy. From there, the course moves on to a detailed analysis of the business auto coverage form, including liability and physical damage coverage. Following that is a review of common endorsements to modify a policy’s provisions, expand or restrict coverage, add additional insureds, and tailor the policy to apply to specific types of risks. The course concludes with a discussion about various rating issues and aspects of the business auto policy.

At the end applicable sections, state-specific information for the three states for which this course is geared—Texas, Ohio, and New Jersey—is provided in shaded boxes. This material will be brief, and there will be no exam questions pertaining to it. Please skip any material that does not apply to your specific state. For example, if you are a Texas agent, there is no need for you to review any of the material under a New Jersey heading.

Upon successful completion of this course, you will be able to:


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