Operation of Private Type and Commercial Automobiles in the business

All automobiles (other than those used for testing) owned or hired by the assured and operated in connection with the business of manufacturing automobiles shall be written in the regular manner; that is, on the Specified Car Basis or under the Five or More Car Rule or under the Hired Car Rule in accordance with Manual rules and rates subject to experience rating modification (if any). Find liability coverage online.

The (A) and (B) portions of the risk may be written separately, but if this is done the ” B” portion shall be written only on the Specified Car Basis.

The policy shall not extend to cover the operation of any branch sales office or garage. Each such branch sales agency or garage must be rated under the rules applying to automobile garages, sales agencies and service stations.

The standard automobile policy form shall be used to cover the private type and commercial automobiles used in the business of the assured (referred to under B) and an endorsement to the following effect shall be attached to the policy to provide coverage for the Testing Hazard (referred to under A).

“In consideration of the premium herein provided and based on the actual number of automobiles manufactured, assembled, repaired or rebuilt by the assured during the policy period which have so far proceeded in the process of manufacture, assembling, repairing or rebuilding as to be capable of use under their own power, it is hereby agreed by and between the named assured and the company that this policy is extended to cover the legal liability of the assured in connection with the (1) testing at or from the factory of the assured of any automobile manufactured, assembled, repaired or rebuilt by the assured (including laboratory models), (2) the driving away or delivery of automobiles manufactured, assembled, repaired or rebuilt by the assured commonly known as ‘drive-aways’, (3) the liability of the assured in connection with the operation and use in the named assured’s business of any automobile not owned by the assured nor licensed in his name nor directly hired by him.

“Nothing contained in this endorsement or in the policy to which it is attached shall be construed to cover the liability, of any person, firm or corporation other than the named assured for the operation of automobiles under the provisions of this endorsement.”


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