As with any insurance policy it is extremely important to take a look at the fine print so you know exactly what kind of coverage you have. This is especially true when shopping for a California commercial automobile policy. Unlike a personal auto policy these can be significantly harder to understand as they are rated using specific numbers called “symbols”. Click here for more information on commercial auto insurance.

Before we get into the symbols and what they mean it is very important to understand that there are actually two sets of symbols. One set for Liability Coverage and one set for Physical Damage Coverage. Much like a personal auto policy liability, coverage will kick in if you or one of your employees gets into an accident where you are at fault. This will cover both medical expenses as well as property damage if the other party is injured.

So what exactly are these symbols you ask and more importantly how do they affect my California Commercial Auto policy and its coverage’s? We are going to cover the Liability Coverage symbols first and they are as follows:

Symbol 1: Covers any auto that is used for business purposes whether you own the vehicle or not. As the number of vehicles grow however the coverage lessens (this is the broadest coverage)

Symbol 2: Covers any automobiles you own; this includes trailers as well as any automobiles you purchase once the policy is bound

Symbol 3: This coverage will only apply to private passenger type automobiles

Symbol 4: Refers to coverage for all autos excluding the ones seen in symbol 3 ex. Vans or large trucks

Symbol 5: Any Auto that is “garaged” in a no-fault state (California however, is not a no fault state)

Symbol 6: Covers Automobiles that are “garaged” in a state where uninsured motorist coverage is required (California does not)

Symbol 7: Only vehicles that are specifically listed on your policy will be covered. For example if you go out and purchase a new vehicle you will have to add it to your policy in order for it to be covered

Symbol 8: Coverage only applies to automobiles that you have leased, rented, borrowed or hired from someone other than anyone in your household, a partner or employee

Symbol 19: This is the newest symbol that has been added. It applies to mobile equipment such as a forklift or bulldozer. If your business utilizes this equipment and you are required to carry liability coverage you MUST make sure this symbol is listed on your policy.

Now, for the symbols pertaining to physical damage coverage, there are significantly fewer than with liability coverage. Each one is specific to how you automobiles will be covered if they are in fact damaged during an accident. As with the liability symbols these get more and more specific as the numbers go up. The symbols are as follow:

Symbol 1: This is the broadest type of physical damage coverage and it applies to any automobile that you use for commercial purposes.

Symbol 2: Pertains to coverage for private passenger automobiles that are owned by you and used for your business.

Symbol 3: Covers all other automobiles other than the ones referred to in symbol 2

Symbol 4: Only vehicles that are specifically listed on your policy will be covered. For example if you go out and purchase a new vehicle you will have to add it to your policy in order for it to be covered

Symbol 5: Coverage only applies to automobiles that you have leased, rented, borrowed or hired from someone other than anyone in your household, a partner or employee

It is very important to also know how your particular insurance carrier defines or classifies your automobiles so you are able to make sure the coverage meets your specific needs. If the symbols you see listed on your policy are not an exact match, don’t worry! You are not out of luck; it is possible to have symbols created to meet your needs. For example if you are making a change to your liability coverage the carrier will most likely use symbol “10”. When making a change to your physical damage coverage, the carrier will most likely use symbol “7”. In both cases these changes are called “endorsements,” and they are added into the language of your California Commercial Auto policy.

 All endorsements come with an explanation but if there is something you don’t understand just give us a call! JVRC Insurance Services can provide insight on current policies and also provide new quotes to improve coverages and pricing! We looking forward to hearing from you!