Commercial Auto Insurance in Maine

Businesses operating vehicles in Maine need commercial auto insurance tailored to business exposures. Commercial policies differ significantly from personal auto policies in coverage, rating, and endorsements.

Business Auto Policy (BAP)

Standard Commercial Auto Form

The Business Auto Coverage Form (CA 00 01) is the foundation of commercial auto insurance:

Policy Structure:

• Section I: Covered Autos
• Section II: Liability Coverage
• Section III: Physical Damage Coverage
• Section IV: Business Auto Conditions
• Section V: Definitions

Coverage Symbol System

The BAP uses numbered symbols (1-10) to designate which vehicles are covered:

Exam Tip: Symbol 1 (Any Auto) provides the broadest coverage. Symbol 7 (Specifically Described Autos) provides the narrowest coverage—only listed vehicles.

Typical Symbol Usage

Reasoning: Businesses want broad liability protection (Symbol 1) but only insure physical damage on specific owned vehicles (Symbol 7) to save premium.

Liability Coverage

Commercial Auto Liability in Maine

Minimum Maine Requirements for Commercial Autos:

• Same as personal autos: 50/100/25
• Many businesses carry much higher limits ($500,000, $1 million, etc.)
• Umbrella policies provide additional liability protection

Covered Exposures

Commercial auto liability covers:

Bodily Injury Liability:

• Injuries to others caused by business vehicle
• Medical expenses, lost wages, pain and suffering
• Legal defense costs (in addition to limit)

Property Damage Liability:

• Damage to others' property
• Vehicles, buildings, fences, landscaping
• Loss of use of damaged property

Hired Auto Liability

When businesses rent/lease vehicles:

Hired Auto Liability (Symbol 8) covers:

• Liability for rental cars, leased vehicles
• Short-term rentals (daily, weekly)
• Long-term leases (1+ years)

Example: Portland business rents van for delivery. Driver causes accident. Symbol 8 hired auto liability responds.

Non-Owned Auto Liability

When employees use personal vehicles for business:

Non-Owned Auto Liability (Symbol 9) covers:

• Employee-owned vehicles used for business purposes
• Business liable for employee negligence while on business
• Protects business (not employee's personal auto policy)

Critical Coverage: Many businesses have significant exposure from employees using personal vehicles for business errands, client visits, etc.

Example: Employee drives personal car to pick up office supplies. Causes accident en route. Business could be liable. Symbol 9 non-owned auto liability protects the business.

Physical Damage Coverage

Collision and Comprehensive (Other Than Collision)

Collision Coverage:

• Damage from collision with vehicle or object
• Upset/overturn of covered auto
• Subject to deductible (typically $500-$2,500)

Comprehensive (Other Than Collision):

• Theft, vandalism, fire
• Glass breakage, falling objects
• Flood, wind, hail damage
• Animal collision (moose, deer)
• Subject to separate deductible (typically $100-$1,000)

Actual Cash Value vs. Stated Amount

Actual Cash Value (ACV):

• Replacement cost minus depreciation
• Most common commercial auto valuation
• Adjuster determines value at time of loss

Stated Amount:

• Business and insurer agree on vehicle value
• Stated in policy schedule
• Loss paid up to stated amount (still subject to ACV if less)

Agreed Value (Endorsement):

• Insurer agrees to pay stated amount regardless of ACV
• No depreciation deduction
• Available for certain vehicles (classic, specialty)
• Higher premium

Commercial Auto Endorsements

Common Maine Business Needs

Drive Other Car (DOC) Coverage:

• Extends coverage to individual drivers
• Covers employee driving any auto (not owned by employer)
• Important for executives, sales personnel

Motor Carrier Coverage:

• Required for trucking companies
• Interstate commerce requirements
• MCS-90 endorsement for federal filing
• Higher liability limits

Employees as Insureds:

• Extends coverage to named employees
• Allows employees to be listed insureds
• Protects employee and employer

Trailers:

• Coverage for owned trailers
• Detached trailers at business location
• Trailers in transit

Maine-Specific Endorsements

Seasonal Adjustment:

• Premium adjustment for seasonal businesses
• Common for tourism industry (summer season)
• Landscaping/snow removal (seasonal operations)

Radius Restriction:

• Lower premiums for local-only operations
• Common radii: 50 miles, 100 miles, 200 miles
• Must be accurate to avoid coverage issues

Maine Commercial Vehicle Types

Common Maine Business Vehicles

Maine Logging and Forestry

Specialized commercial auto needs:

Exposures:

• Heavy truck operations
• Logging trucks, chip vans
• Rural/unpaved road operations
• Load shifting/securement

Coverage Requirements:

• High liability limits ($1 million+)
• Physical damage with agreed value
• Cargo coverage for loads
• Pollution liability (if hauling chemicals)

Garagekeeper's Legal Liability

Coverage for Auto Service Businesses

Who Needs It:

• Auto repair shops
• Car dealerships
• Parking garages/lots
• Service stations
• Towing companies

What It Covers:

• Damage to customers' autos while in business's care, custody, or control
• Fire, theft, vandalism, collision
• Legal liability for damage to customers' vehicles

Direct Coverage vs. Legal Liability:

Maine Garagekeeper Scenario:

Portland auto repair shop has customer's car overnight. Fire damages multiple vehicles in shop. Garagekeeper's coverage pays for customer vehicles.

Trucking and Motor Carrier Coverage

Interstate Commerce Requirements

Federal Requirements (FMCSA):

• Minimum $750,000 liability for general freight
• $5 million for hazardous materials
• $1 million for passenger vehicles (16+ passengers)
• MCS-90 endorsement proving minimum coverage

MCS-90 Endorsement

Endorsement for Motor Carriers:

• Filed with Federal Motor Carrier Safety Administration
• Guarantees minimum federal liability coverage
• Protects public (not truck owner)
• Required for interstate authority

Certificate of Insurance:

• BMC-91 or BMC-91X forms
• Proof of required minimum coverage
• Filed with FMCSA

Workers' Compensation Interaction

When Employee Injured in Commercial Vehicle

Coordination:

• Workers' Compensation: Covers employee injuries in course of employment
• Commercial Auto Medical Payments: May provide additional coverage
• Coordination of Benefits: WC typically primary

Employer Liability:

• WC provides exclusive remedy (employee can't sue employer)
• Exception: Intentional acts or gross negligence
• Commercial auto liability covers third-party injuries

Maine Unique Considerations

Winter Operations

Commercial vehicles face harsh Maine winters:

Coverage Considerations:

• Comprehensive for snow/ice/winter damage
• Increased collision risk in winter
• Towing/roadside assistance
• Rental reimbursement for downtime

Winter Maintenance Businesses:

• Snow removal contractors
• Salt/sand trucks
• Plowing operations
• Seasonal rating options

Coastal and Marine-Related Businesses

Special exposures:

• Boat/yacht transport
• Marine supply delivery
• Fishing industry support
• Tourism shuttles to coastal destinations

Coverage Needs:

• Higher liability for coastal tourism
• Cargo coverage for marine equipment
• Seasonal adjustment for summer tourism peak