With a proposed effective date of 9/1/22, ISO is adding a new endorsement, CA 04 65, to address auto hacking expenses, with an optional add-on for ransom payments. The development of improved technology and the desire to make vehicles more and more autonomous brings with it concerns that this technology can be hacked, and vehicles may fall under the control of those who are not inside the vehicle. Commercial vehicles are apt to be the first to put this technology to use. 

Eligibility:

Eligible vehicle types for Auto Hacking Expense Coverage are restricted to private passenger types and light/medium trucks, with the possibility of expanding the eligibility to additional vehicle types in the future. The new ISO Rule 119 introducing Auto Hacking Expense Coverage contemplates a selection/exclusion option for Ransom Coverage. The introductory rule indicates that the premium charge will be per vehicle, contemplating a $200 per incident deductible.

This new endorsement may be added to the Auto Dealers Coverage Form, the Business Auto Coverage Form, and the Motor Carrier Coverage Form.

CA 04 65 09 22 Auto Hacking Expense Coverage

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Introduction:

CA 04 65 is a scheduled endorsement, requiring that each auto to be covered show an associated aggregate limit, per incident deductible, and premium for the Auto Hacking Expense Coverage. To add Ransom Coverage, an "X" must be checked in the left-side box directly below the scheduled autos.

The "auto hacking expense" coverage under the endorsement will apply on a discovery basis, requiring that the "auto hacking incident" be "discovered" during the policy period, or within 30 days of the policy expiration if there is no other subsequent coverage available to cover such expenses.