The Commercial Auto policy will pay “sums” for which the insured is legally liable because of bodily injury or property damage to which the insurance applies. Therefore, while covered bodily injury or property damage is required to trigger coverage, recovery under the policy can actually go beyond these types of damages.

Auto Physical Damage is coverage for damage to autos owned by the insured, and it’s completely optional (unless required by a lender). Physical damage coverage is divided into loss caused by collision, and loss caused by something other than collision. (The latter category is frequently referred to as comprehensive coverage, but in reality, “comprehensive coverage” is one of two types of coverage for loss caused by “other than collision.”) These are separate coverages, with different rates, and at the insured’s option, different deductibles. They can be purchased separately or in combination.

Whenever you are storing or transporting goods and merchandise for third parties, you are in a position of responsibility if anything should happen to those products. You can purchase coverage to limit your exposure due to losses caused by:

• Natural or man-made disasters
• Contamination
• Infestation
• Theft
• Exposure to extreme temperatures or loss of refrigeration
• Fourth-party warehouse arrangements

Depending on the size and scope of your company, this extra liability coverage may nor may not be necessary. If you are responsible for storing or transporting large amounts of expensive merchandise, or if your business runs buses or other large people-moving vehicles, your liability risks will likely exceed your maximum coverage. An umbrella insurance policy may therefore be vital to protecting your investment.attach until the underlying policy’s limit of insurance has been exhausted.