Summary: There are a multitude of ISO commercial auto endorsements, and year by year, the list keeps growing. Rather than attempt a discussion of all of the endorsements in one commentary, we will provide a listing, brief discussion and explanation of each of the endorsements by the way they are categorized by ISO – Amendatory endorsements (Categories 01 and 05), Cancellation and Suspension endorsements (Category 02), Deductible endorsements (Category 03), Additional Coverage endorsements (Category 04), Specialized Types endorsements (Category 20), Uninsured Motorists endorsements (Category 21), No-Fault endorsements (Category 22), Commercial Auto endorsements (Category 23), Public Transportation endorsements (Category 24), Garage endorsements (Category 25), Single Interest endorsements (Category 26), Additional Garage endorsements (Category 27), Special Types endorsements (Category 28), and Common Coverages and Rating Procedures endorsements (Category 99).
The first of these commentaries addressed Categories 01, 02, 03 and 05. Subsequent articles will discuss:
This commentary will address the endorsements in Category 04 – Additional Coverage endorsements.
Here is a list of all approved forms for commercial auto.
Topics Covered:
Garagekeepers coverage for autos and watercrafts CA 04 15
Full safety glass coverage CA 04 21
Earlier notice of cancellation provided by us CA 04 22
Volunteer hired autos CA 04 39
Replacement cost coverage – private passenger types CA 04 41
Exclusion of federal employees using autos in government business CA 04 42
Waiver of transfer of rights of recovery against others to us CA 04 44
Golf carts and low-speed vehicles CA 04 45
Primary and Noncontributory – Other Insurance Condition CA 04 49
Auto hacking expense coverage CA 04 65
Garagekeepers Coverage for Autos and Watercrafts CA 04 15
This is a new endorsement effective 11 20. it applies to coverages under the auto dealers, business auto, or motor carrier coverage forms. Endorsement CA 04 15 11 20 provides a definition of "customer's auto" with respect to customers' sound-receiving equipment when such coverage is provided under either the garagekeepers coverage or garagekeepers coverage – customers' sound-receiving equipment.
Under the endorsement, customer's auto means a land motor vehicle, "trailer", semitrailer or watercraft within the insured's legal possession for the purposes of service, repair, storage or safekeeping. This coverage does not require the vehicle or watercraft owner's knowledge or consent. A "customer's auto" also includes any such vehicle or watercraft left in the insured's care by their "employees" and members of their households who pay for services performed.
Full Safety Glass Coverage CA 04 21
This is a new endorsement effective 11 20. it applies to coverages under the auto dealers, business auto, or motor carrier coverage forms. Endorsement CA 04 21 11 20 allows for elimination of the deductible that applies under comprehensive coverage with respect to the cost of repairing or replacing damaged safety glass on covered autos as designated in the endorsement schedule. The options are to eliminate this deductible on either all covered autos, all private passenger covered autos, or specifically described covered autos shown in the schedule.
Earlier Notice of Cancellation Provided by Us CA 04 22
This is a new endorsement effective 11 20. it applies to coverages under the auto dealers, business auto, or motor carrier coverage forms. Endorsement CA 04 22 11 20 simply provides a way to increase the number of days' notice of cancellation (other than for non-payment of premium) to either the number of days provided for in the common policy conditions cancellation provision, or to the specified number of days shown in the schedule of the endorsement.
Volunteer Hired Autos CA 04 39
This is a new endorsement effective 11 20. it applies to coverages under the auto dealers, business auto, or motor carrier coverage forms. Endorsement CA 04 39 11 20 adds a "volunteer" as an insured while performing duties related to the insured's business and operating a hired or rented "auto". This must be substantiated by a hired or rental contract or agreement, and the volunteer's duties must be with the insured's permission. The coverage does not extend to bodily injury of any volunteer, fellow volunteer, or the spouse, child, parent, brother or sister of that volunteer. This grants the volunteer coverage as if the auto were a covered auto owned by the insured, but only for Hired Auto Physical Damage coverage. To effect the coverage, a definition is added for "volunteer" to mean a non-employee, a person who donates his or her work, and acts at the direction of and within the scope of duties determined by the insured, and receives no payment or compensation of any kind from anyone for their work performed for the insured. Further, the Other Insurance condition with respect to primary and excess coverage is amended by adding the provision that for Hired Auto Physical Damge Coverage, a covered auto hired or rented by the insured's volunteer, in the volunteer's name, will be deemed to be an owned covered auto, as long as the volunteer is entering the contract with the insured's permission.
The insured contract definition is amended for purposes of this endorsement. Paragraph 6. of the definition is amended by adding a "volunteer" to paragraphs a. and b., which in effect enables a "volunteer" to be treated the same as an insured or an "employee" with respect to insured contracts.
Replacement Cost Coverage – Private Passenger Types CA 04 41
Endorsement CA 04 41 11 20 is a new optional physical damage coverage endorsement. The endorsement is only available to cover owned private passenger auto types for replacement cost coverage in event of a total loss, for those autos shown in the endorsement schedule. The private passenger types must be specifically rated and replacement cost coverage applies to both comprehensive and collision coverages, with no deduction for depreciation. The replacement cost will kick in if there is a total loss, and at the time of that total loss, the private passenger type auto must be owned for 24 months or less, the named insured must be the original owner, and the auto must have less than 24,000 miles on the odometer at the time of loss.
If all of these conditions are met, the covered auto will be replaced with a new vehicle of the same make, model, trim level and equipment, or an equivalent. If such a vehicle is unavailable, the insurer will replace the covered auto with a new vehicle of similar class, body type, size and equipment, that is similar in price to what the insured paid for the auto being replaced. The amount will not be greater than 110% of the MSRP of the auto being replaced.
Naturally, no one will be entitled to receive duplicate payments for the same elements of loss under this endorsement and the coverage form's physical damage coverage, and the coverage will be reduced by the applicable deductible.
Exclusion of Federal Employees Using Autos in Government Business CA 04 42
CA 04 42 10 13 states that the following are not insureds under the liability section of the BAP: the United States of America or any of its agencies, or any United States Government employee, including the named insured. This is so for bodily injury or property damage resulting from the operation of an auto under the following conditions: the bodily injury or property damage results while the employee is acting as an employee; and, the Federal Tort Claims Act requires the U.S. Attorney General to defend the employee in any civil action or proceeding that may be brought for the injury or damage.
Waiver of Transfer of Rights of Recovery Against Others To Us (Waiver of Subrogation) – Automatic When Required By Written Contract or Agreement CA 04 43
CA 04 43 11 20 is a new endorsement which permits adding an automatic waiver of subrogation when it is required under a written contract or agreement entered into by an insured, without the requirement that the person or organization be scheduled in the endorsement.
Waiver of Transfer of Rights of Recovery CA 04 44
Endorsement CA 04 44 10 13 simply is a waiver of subrogation endorsement. It states that the transfer of rights of recovery against others condition does not apply to the person(s) or organization(s) shown in the schedule of the endorsement. This waiver of subrogation is effective only to the extent that subrogation is waived prior to the accident or the loss under a contract with that person or organization.
Golf Carts and Low-Speed Vehicles CA 04 45
This endorsement provides only those coverages where a premium is shown in the schedule. Each of these coverages applies only to the vehicles shown as covered autos in the schedule. CA 04 45 10 13 provides liability, med pay, personal injury protection (or no-fault equivalent), and uninsured motorists (and underinsured motorists when not included in uninsured motorists coverage) coverages for the golf cart and low-speed vehicles described as covered autos in the endorsement's schedule.
Primary and Noncontributory – Other Insurance Condition CA 04 49
CA 04 49 11 16 was newly introduced in 2016 to provide coverage to an insured on a primary and noncontributory basis under two conditions. First, the insured must be listed as a named insured on other insurance that is available to them, and secondly, the named insured on the policy the endorsement is attached to has agreed in a written contract or agreement that the named insured's policy will be primary and will not seek contribution from any other insurance available to that insured.
On-Hook Coverage CA 04 52
Endorsement CA 04 52 11 20 was newly introduced in 2020, and provides coverage for damage to, or loss of, a customer's auto or its equipment left in the insured's care in their towing operation. The coverage is not available for insureds who have garage or service locations.
Auto Hacking Expense Coverage CA 04 65
Endorsement CA 04 65 09 22 has been discussed in detail in several other communications. The first commentary was provided prior to the release of the endorsement:
The contract analysis of the endorsement is provided here:
Further, ISO will be releasing a revised endorsement in 2024, and that commentary is provided here:
https://www.nuco.com/fcs/2023/05/29/commercial-auto-hacking-expense-endorsement-01-2024-revision/
Non-Ownership Liability Coverage for Volunteers CA 05 24
Endorsement CA 05 24 11 20 was newly introduced in 2020. The endorsement extends liability coverage to individual volunteers while using their personal autos or other non-owned autos in connection with the named insured's business. Coverage can also extend to anyone who provides the volunteer with the auto used in the business activity, but only to the extent of liability arising out of that activity. "Volunteer" is a defined term, to mean:
… a person, who is not your "employee", and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you.
The endorsement contains a schedule so if desired, the coverage can be restricted to only those specified activity(ies) described in the schedule.
While the endorsement provides coverage for the volunteer's liability, it does not cover any injury to the volunteer or the spouse, child, parent, brother or sister of that volunteer arising as a consequence of the activity.
So for example, a volunteer is driving their own car to pick up some supplies for the insured's event, at the direction of the insured. The volunteer runs a red light, crashing into another vehicle, and sustains a paralyzing injury. In this case, the volunteer's liability to the other vehicle and its occupants will be covered, but the injury to the volunteer will not be covered. Even if a spouse files suit against the insured, there will be no coverage for such a suit.
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