Automobile
A commercial automobile policy is written on the same form as the personal lines automobile policy with the difference being that the vehicle is used for commercial or business purposes. In addition to the endorsements used on a personal automobile policy, there are several endorsements designed specifically for commercial automobile use.
SEF #21B - Blanket Basis Fleet Endorsement
This endorsement provides blanket coverage to all automobiles owned or leased without reporting them during the policy term. The premium is subject to a year-end adjustment, based on the vehicles the Insured has had throughout the year.
On policies with over five vehicles (depending on the insurer, could be more), the policy premium is usually based on fleet rating. This is were all the vehicles are given a base rate, then the Underwriter applies credits or surcharges to the premium based of the past losses and the nature of the risk. This does not always result in a lower premium then when vehicles would be rated on an individual bases where the rates are published in a manual, but it does allow the Underwriters to provide better rates on the above average risks.
