Broad Form Products Coverage CA 25 01

The garage form does not cover claims for property damage to any of the goods or products that the named insured garage made or sold if the damage was caused by a defect existing in the products at the time of sale or transfer to another. For example, if the insured sells a defective tire and later there is a blowout and the customer's auto is damaged in the collision that results, the exclusion eliminates coverage for the defective tire.

The defective products exclusion on the garage coverage form is removed by the use of CA 25 01. This endorsement provides coverage for the amount of property damage to the named insured's products that exceeds $250 for any one accident. See ]IDL:Annotated Garage Liability Section II.xml^”Annotated Garage Liability Section II”, Casualty & Surety, Auto section^Annotated Garage Liability Section II] for more information.

Dealer's Drive-Away Collision Coverage CA 25 02

Under the garage physical damage coverage, collision damage is excluded if a covered auto is driven or transported more than 50 miles from the point of purchase or distribution. Endorsement CA 25 02 removes this exclusion, provided two conditions are met: (1) the dealer's monthly or quarterly reports must include points of origin, destination, and factory price of each such covered auto, and; (2) at the time of loss, the last report on file with the company must include a value sufficient to cover all transported covered autos during the report period. Otherwise, only a proportional payment will be made. See Garage Form Physical Damage Coverage for more information.

False Pretense Coverage CA 25 03

If a garage policy insured is tricked into parting with a covered auto, there is no coverage because of the false pretense exclusion in the policy. This endorsement buys back the exclusion. See False Pretense Insurance for more information.

Fire, Fire & Theft and Limited Specified Causes of Loss Coverage for Dealers CA 25 04

Instead of comprehensive or specified causes of loss coverage, this schedule allows the insured to select the following types of coverage: (a) fire, lightning, and explosion, (b) fire, lightning, explosion, and theft, or (c) limited specified causes of loss (without mischief or vandalism). The rest of the standard physical damage provisions of the policy apply.

Garage Locations and Operations Medical Payments Coverage CA 25 05

This endorsement offers coverage for medical expenses of persons other than any insured if they are injured while on the insured premises or in the course of the insured garage operations. Injuries from the operation of an automobile are excluded. (Auto medical payments can be endorsed onto the garage policy by means of a general endorsement available to all commercial auto programssee Auto Medical Payments Insurance .)

Locations and Operations Not Covered CA 25 07

When an insured is involved in a business that is unrelated to the operations covered under the garage policy (apartment ownership, for example,) it is important to establish that the garage form does not contemplate coverage for that other business. This endorsement is used to exclude the exposure from the coverage of the garage policy. It further clarifies what is to be excluded with a description of the location and type of operation that is not covered.

Personal Injury LiabilityGarages CA 25 08

Personal injury liability coverage may be included under the garage form. The insurer, through this endorsement, promises to pay all sums that the insured legally must pay as damages because of personal injury caused by an offense committed in the conduct of the named insured's business and committed in the coverage territory during the policy period. Personal injury is a defined term, referring to false arrest, malicious prosecution, slander, and so on, and including consequential bodily injury.

The endorsement does not include personal injury's common companion, advertising injury. Both coverages are available in the broadened coverages endorsement described below (CA 25 14).

The each accident limit of insurance for garage operations, other than covered auto does not apply to damages paid because of personal injury. However, the limit of insurance provision shows that any amount paid is subject to the aggregate limit for other than auto losses.

Owners of Garage Premises CA 25 09

Landlords of garage policy tenants can be added as additional insureds for their potential liability arising out of the ownership, maintenance, and use of that part of the premises they lease to the named insured garage.

Coverage ceases if the tenant vacates the premises and coverage does not extend to the landlord for structural alterations, new construction, or demolition operations he or she may order. (The garage liability coverage applies to landlord and garage insured both if the dealer is the one to order the alterations, construction, or demolition operations.).

Fire Legal Liability CoverageGarages CA 25 10

The garage policy's property damage liability provisions exclude any property that is rented or occupied by the insured. This endorsement extends legal liability coverage for fire damage to premises while rented to or temporarily occupied by the named insured with the permission of the owner. Each premises must be specifically described on CA 25 10 and assigned a per-fire limit of liability. The limit of insurance is subject to the aggregate limit for other than auto losses. Two of the garage form's exclusions apply to the coverage under this endorsement. The first excludes intentional damage by an insured; the second excludes any assumed contractual liability wherein the insured has

agreed to provide hold harmless coverage to a third party.

Note that only the fire peril is treated by this endorsement. It thus may be necessary or desirable to explore other risk management methods to provide broader coverage. See Fire Legal Liability Insurance .

Named Driver Collision Coverage CA 25 11

If a garage policy insured is able to exercise strict control over who drives business vehicles and consequently feels that the major exposure from collision damage occurs when garage autos are on the road but does not wish to buy blanket collision coverage, he or she can elect to add the named driver collision coverage endorsement, CA 25 11, to the garage policy. This form specifies driver names, applicable deductibles, and affords collision protection to covered autos only when a named individual is driving, towing,

carrying, or is a passenger in the covered auto during trips within the standard 50 mile radius.

Broadened CoverageGarages CA 25 14

For many years, commercial insureds were offered a convenient way to broaden liability protection by way of one of various broad form endorsementsindivisible packages of coverage for other exposures added to the basic contract. However, garage insureds were not offered the same convenience. They could purchase the same added coverages, but, following ISO procedures, only by means of separate policies at greater expense. This endorsement brings the packaging convenience to garage insureds, but only for the garage operations of the insured (other than the ownership, maintenance, or use of the covered autos).

The added coverages are personal and advertising injury liability insurance, host liquor liability, fire legal liability, incidental medical malpractice, nonowned watercraft liability insurance, limited worldwide liability coverage and automatic liability coverage for newly acquired garage businesses, coverages similar to those offered by the broad form endorsement to the 1973 comprehensive general liability policy.

Total Pollution ExclusionOther Than Covered Autos ExposureGarage Form CA 25 16

This endorsement changes the pollution exclusion on the garage form, the pollution exclusion applicable to garage operations other than covered autos. CA 25 16 excludes coverage for BI or PD that would not have occurred in whole or in part but for the actual or threatened discharge, release, or escape of pollutants at any time. It also excludes loss, cost, or expense arising out of any clean up orders, requests, or requirements. As the title indicates, this endorsement is meant to be a total pollution exclusion.

ExclusionY2K Computer-Related Problems CA 25 18

This exclusion applies to the garage operations other than covered autos section of the garage coverage form. CA 25 18 states that the insurance does not apply to BI, PD, personal injury, or advertising injury arising out of any actual or alleged failure, malfunction, or inadequacy of computer hardware, software, operating systems, networks, microprocessors or any other computerized or electronic equipment; this would be due to the items' inability to correctly recognize, process, or accept the year 2000 and beyond.

ExclusionY2K Computer-Related ProblemsProducts CA 25 19

This exclusion is similar to the preceding one except that it applies to BI or PD caused by the named insured's products or work performed arising out of the failure of computers to recognize the year 2000. So, if the named insured sells a certain product and that product causes bodily injury to a customer due to its computerized parts not being able to process the year 2000, this exclusion would preclude liability coverage under the garage form.

Year 2000 Limited Coverage Options CA 25 20

This exclusion applies to BI, PD, personal injury, or advertising injury arising out of computers failing to process the year 2000, but allows the insured to buy back certain coverages. The endorsement allows the insured to choose coverages to be provided (such as BI or PD) arising out of the location or products or work performed that is chosen by the insured. So, if the insured checks BI coverage for the location of the garage, then CA 25 20 will provide liability coverage for the insured in case anyone is injured at the garage location due to a Y2K failure. As it states, the endorsement provides limited coverage options to the insured to combat Y2K claims.

ExclusionY2K Computer-Related Problems With BI Exception CA 25 24

This endorsement excludes any liability coverage arising out of a Y2K computer failure, but allows coverage for BI occurring on any premises owned by or rented to the named insured. CA 25 24 is a limited version of CA 25 20.

Year 2000 Computer-Related Problems Exclusion of Specified Coverages CA 25 25

This endorsement is similar to CA 25 20 except that instead of the endorsement allowing the insured to choose which coverages and which operations or locations will be covered, CA 25 25 allows the insured to choose which coverages, operations, and locations that the exclusion will apply to; sort of a mirror image endorsement to CA 25 20. The bottom line is that CA 25 25 gives the insured some coverage options for liability claims arising out of the Y2K problem.

Other Than Covered Autos ExposureTotal Pollution Exclusion with Exceptions CA

25 36

This endorsement replaces the pollution exclusion applicable to garage operationsother than covered autos. It is similar to endorsement CA 25 16, but does allow for two exceptions to the total pollution exclusion. The pollution exclusion does not apply to bodily injury if sustained within a building and caused by smoke, fumes, vapor, or soot from equipment used to heat the building. And, the exclusion does not apply to bodily injury or property damage arising out of heat, smoke, or fumes from a hostile fire.

Auto Medical Payments Coverage CA 99 03

This endorsement can be used with any of the standard commercial auto coverage forms. See Auto Medical Payments Insurance .)

Drive Other Car CoverageBroadened Coverage for Named Individuals CA 99 10

Only the named insured, more often a firm than an individual, can extend the liability coverage of the garage coverage form to rented or borrowed automobiles. Individuals, even the principal stockholder and manager of an incorporated dealership, will have no coverage under the policy while using a friend's car in a nonbusiness setting. Managers, sales persons, family members, any who have the use of dealership autos and who look to the garage coverage form for their auto liability protection are candidates for drive other car coverage. “Broadened coverage” in the title of the endorsement refers to other nonowned auto exposures that may be covered along with the liability exposure, e.g., auto medical payments, uninsured motorists coverage, and even physical damage insurance.

For more information on this type of coverage, see Drive Other Car Coverage Endorsements .

Individual Named Insured CA 99 17

If an individual named insured is not a dealer, this endorsement is used to add the equivalency of personal auto coverage with respect to owned private passenger autos covered under the garage policy. Coverage is extended to the named insured's spouse and family members residing in the insured's household and coverage includes automatic nonowned auto liability and physical damage protection (as provided in the garage policy) for these persons. For more information, see Drive Other Car Coverage Endorsements .

Individual Named InsuredDealers Only CA 99 18

The individual doing business as a dealer will not require CA 99 17 (above) since the liability coverage on owned autos extends to spouse and family members using owned autos with the insured's permission. However, these persons are left without protection if they should rent or borrow an automobile in their own right. The only nonowned auto coverage under the garage form applies to autos that “you”, the named insured, rents or

borrows. This endorsement amends “you” to include the spouse of the individual named insured. Drive other car coverage for other family members can be arranged using endorsement CA 99 10, reviewed above.

Stated Amount Insurance CA 99 28

This endorsement is discussed in the article on business auto endorsements; see Business Auto Endorsements .

Tapes, Records and Discs Coverage CA 99 30

Endorsement CA 99 30 amends the physical damage coverage section of the garage form. The exclusion on the garage form referring to tapes, records, discs, or other similar audio, visual, or data electronic devices designed for use with audio, visual, or data electronic equipment does not apply. CA 99 30 provides coverage for tapes, records, or discs under comprehensive coverage if those items are the property of the named insured or a family member, and are in a covered auto at the time of loss. The most the insurer will pay under this endorsement is $200 and no deductible is applicable.

Split Liability LimitsGarages CA 99 38

Under the liability section of the garage policy, bodily injury and property damage coverage is expressed as a single limit. Split liability limits can be provided using this endorsement. Its standard format shows separate limits under bodily injury for each person and each accident and a property damage limit for each accident. For clarification, the endorsement restates the policy's $100 deductible applicable to property damage to an auto as a result of work performed by the insured.

Pollution LiabilityBroadened Coverage for Covered Autos CA 99 55

This endorsement changes the liability coverage under the garage form by making paragraph a. of one of the pollution exclusions applicable only to liability assumed under a contract or agreement. CA 99 55 changes the pollution exclusion applicable to garage operationscovered autos in that the clause discussing pollutants that are transported or in the course of transit is deleted (except for when the insured assumes liability for a loss

under a contract or agreement). Therefore, with this endorsement, if BI or PD arises out of the discharge of pollutants that are being transported by one of the insured's covered autos, such bodily injury or property damage is a covered occurrence.

Garagekeepers CoverageCustomers' Sound Receiving Equipment CA 99 59

Sound receiving equipment is defined here as permanently installed sound receiving equipment designed for use as CB radios, two-way mobile radios, car phones, or scanning monitor receivers, including antennas and other accessories. Since garagekeepers coverage under the garage form only applies to equipment that is permanently installed in the dash or console opening, whereas today much sound receiving equipment can be otherwise installed, CA 99 59 is needed to accommodate the current situation. The sound receiving equipment still has to be permanently installed in the customer's auto, but just not in the dash or console opening.

As with the basic garagekeepers coverage, this addition may also be changed so that direct coverageexcess or primaryis applied if that is what the insured chooses.

The coverage is scheduled on the endorsement by location and for a specific limit minus a specific deductible. Theft or conversion is excluded.

Optional LimitsLoss of Use Expenses CA 99 90

Endorsement CA 99 90 provides that the insurer will pay expenses for which an insured becomes legally responsible to pay for loss of use of a vehicle rented or hired without a driver. The covered causes of loss are those which the insured has chosen for the garage physical damage coverage, and the endorsement allows for the insured to choose an amount per day and a maximum that the insurer will pay.