PIP is not a requirement on a Florida Commercial Auto Policy, but it will be included on some policies.
Commercial policies have many more variables and options that can cause PIP to be included or not included. Basically, some of these included designations (symbols) will need PIP coverage when a commercial policy is acquired:
- ANY AUTO is reserved for liability coverage only and provides coverage for any auto owned, hired, borrowed, or used by the named insured. Newly acquired autos are automatically covered. Reserved for policies in which all owned vehicles for all named insureds are scheduled.
- OWNED AUTOS like ANY AUTO provides automatic coverage for newly acquired owned autos. It does not provide coverage for non-owned or hired autos. It is used to provide coverage for liability, medical payments, physical damage and uninsured motorists. This coverage is useful in situations where you do not want to provide hired and non-owned auto coverage.
- OWNED PRIVATE PASSENGER AUTOS ONLY, used to trigger coverage for owned private passenger types. It also provides coverage for newly acquired owned private passenger type units. It may be used to activate coverage for liability, medical payments, physical damage and uninsured motorists. For most commercial auto policies ANY AUTO, OWNED AUTO or OWNED AUTOS OTHER THAN PRIVATE PASSENGER AUTOS are more appropriate than this definition.
- OWNED AUTOS OTHER THAN PRIVATE PASSENGER AUTOS serves the same purpose as OWNED PRIVATE PASSENGER AUTOS ONLY but it activates coverage for all units except private passenger types. Appropriate for individuals and sole proprietorships where the intent is to not provide coverage for private passenger type exposures.
- OWNED AUTOS SUBJECT TO NO FAULT is used for no-fault coverage only, it is limited to autos licensed or principally garaged in states where no fault coverage is mandatory. If the insured operates in more than one state, this symbol may be used to cover all the insured's units that are required to carry no fault benefits. Coverage is extended to autos the insured acquires during the policy period. The designation used should be no broader than that shown for BI and PD liability. For example, if SPECIFICALLY DESCRIBED AUTOS is used for liability coverage, SPECIFICALLY DESCRIBED AUTOS should also be used for no fault.
- OWNED AUTOS SUBJECT TO COMPULSORY UNINSURED MOTORISTS LAW is used for UM/UIM coverage only, this symbol should only be used on multiple state policies. This symbol may only be used by insureds in those states where there is no right of written rejection.
- OWNED AUTOS SUBJECT TO COMPULSORY UNINSURED MOTORISTS LAW is appropriate only when:
- The risk has autos garaged in more than one state, not all of which have compulsory UM laws; and
- The insured does not wish to purchase UM coverage but is required to do so in some of the states where coverage is provided; and
- The liability coverage (BI & PD) applies to all owned autos.
- In all other cases, the designation used to trigger UM coverage should be no broader than that shown for BI and PD liability.
- SPECIFICALLY DESCRIBED AUTOS designates coverage is limited to units specifically described on the policy schedule. Coverage for newly acquired units is provided only if (1) the company already insures all autos the named insured owns for the coverage desired or it replaces an auto previously owned that had that coverage; and (2) the company is notified of the acquisition within 30 days.
- HIRED AUTOS activates coverage on any auto the named insured leases, rents, hires or borrows. No coverage applies to autos owned by the insured's employees or members of their families. It is important to remember that liability coverage is provided on an excess basis only. HIRED AUTO should not be used for liability coverage when ANY AUTO is selected since ANY AUTO includes hired auto.HIRED AUTOS may be used to provide physical damage coverage for hired autos on a primary basis. It may not be used to trigger uninsured (underinsured) motorists, no fault or medical payments coverages.
- NON-OWNED AUTOS is used to provide liability coverage for autos the named insured does not own, hire, lease, rent or borrow. Included within the scope of this are autos owned by employees. Like HIRED AUTOS, the use of this symbol is inappropriate when ANY AUTO is selected.
- MOBILE EQUIPMENT SUBJECT TO MOTOR VEHICLE LAW should be used to provide coverage for vehicles that would fall within the definition of mobile equipment under this auto policy were they not also subject to motor vehicle insurance requirements. MOBILE EQUIPMENT SUBJECT TO MOTOR VEHICLE LAW is not available when symbols ANY AUTO, OWNED AUTOS, or OWNED AUTOS OTHER THAN PRIVATE PASSENGER AUTOS are used, as those symbols extend coverage to mobile equipment subject to motor vehicle insurance requirements.
When PIP is purchased on a commercial auto policy, these options may be available on a commercial policy:
- School Bus
- Church Bus
- Commercial/Private Passenger Types with Worker's Compensation
- Commercial/Private Passenger Types without Worker's Compensation
As you can see, a commercial policy may or may not include PIP coverage. Typically, you will see PIP included on smaller business' policies and not larger commercial auto policies.