This numerical designation represents a selected scope of protection inside a business auto insurance coverage coverage. It signifies that the coverage insures solely particularly described autos listed on the coverage declarations. For example, a enterprise may use this designation when insuring a small fleet of supply vans, every of which is individually recognized on the insurance coverage doc. No different autos could be coated.
The importance of this designation lies in its precision. It affords a clearly outlined restrict to the insurer’s legal responsibility and helps companies handle their insurance coverage prices by solely masking the autos they explicitly want. Traditionally, this methodology has offered an easy technique of figuring out which autos are protected, decreasing ambiguity and potential disputes within the occasion of a declare.