Q: Would a personal umbrella insurance policy provide an extra layer of coverage for a business owner driving a vehicle registered to the business and insured on a business auto policy if the BAP limits were exhausted? There was an incident when operating a business-owned and insured vehicle and there was personal liability once the business auto policy paid the full limit.

Response 1: Depending on the PUP policy, there may be coverage for the driver driving “any auto." For a non-owned auto, coverage would be excess. If the auto is a private passenger auto, several personal auto policies and PUPs usually do not exclude auto coverage. You need to review the policy forms to see if excess coverage is available under either or both the PAP and PUP.

Response 2: It depends on the umbrella. There is no standard personal umbrella policy used widely in the marketplace.

If the individual is sued personally, they should have extended non-owned coverage that would include the company car. In that case, the PUP could cover that.

Response 3: The business exclusion in a PUP usually doesn't apply to the auto exposure, but there is no way to know for sure without reviewing the policy. If it's a follow form excess policy and the underlying PAP is non-ISO, there could be a business use exclusion. Or, even if the PAP is ISO and this is a vehicle furnished or available for regular use, extended non-owned coverage would have to be endorsed on the PAP and then it would be up to the PUP whether the coverage extends.

Response 4: On an ISO form, the PAP covers the insured for the use of any auto. There is no exclusion for the business use of a private passenger auto, it only excludes the business use of something like a box truck. An umbrella may provide similar coverage.

Response 5: Many PUPs would provide coverage for driving a car owned by a business, even if it's used in business. Business use of trucks is typically excluded, as is livery. Sometimes the exclusion for furnished autos will apply if it's a company car, but coverage for furnished autos may also be covered.

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