Category 20 – Specialized Types endorsements

Category 25 Garage (Auto Dealers) endorsements

Category 26 Single Interest endorsements

Here is a list of all approved forms for commercial auto.

This commentary discusses the endorsements identified in Category 23 – Commercial Auto Endorsements. These are varying endorsements that address certain exposures and coverages not otherwise categorized.

Topics covered:

Explosives CA 23 01

Multipurpose equipment CA 23 03

Rolling stores CA 23 04

Motor carriers and truckers

Wrong delivery of liquid products CA 23 05

Motor Carriers – excess coverage for the named insured and named lessors for leased autos CA 23 08

Motor Carriers – insurance for non-trucking use CA 23 09

Motor Carriers – named lessee as insured CA 23 12

Trailer interchange fire and fire and theft coverages CA 23 13

Truckers – Uniform Intermodal Interchange Endorsement Form UIIE – 1 CA 23 17

Agricultural produce trailers – seasonal CA 23 24

Coverage for injury to leased workers CA 23 25

Motor Carrier endorsement CA 23 30

Public or livery passenger conveyance exclusion CA 23 44

Public or livery passenger conveyance and on-demand delivery services exclusion CA 23 45

Exclusion of terrorism CA 23 84

Exclusion of terrorism involving nuclear, biological or chemical terrorism CA 23 85

Silica or silica-related dust exclusion for covered autos exposure CA 23 94

Amphibious vehicles CA 23 97

Trailer interchange coverage CA 23 98

Explosives CA 23 01

Endorsement CA 23 01 10 13 is used to exclude bodily injury or property damage caused by explosion of any explosives the insured either makes, sells or transports.

Multipurpose Equipment CA 23 03

This endorsement CA 23 03 10 13 permits scheduling of specified vehicles to be mobile equipment rather than autos.  The definition of "mobile equipment" is not changed by this endorsement. So for example, if scheduled as mobile equipment, the vehicle would not be covered while being driven on roadways unless the roadways are on or next to insured premises and the vehicle is being used for maintenance of such premises.

 Rolling Stores CA 23 04

CA 23 04 10 13 states that liability coverage for a covered auto that is a rolling store is changed by adding the following exclusion: the insurance does not apply to bodily injury or property damage resulting from the handling, use, or condition of any item that the insured makes, sells, or distributes if the injury or damage occurs after the insured has given up possession of the item. The endorsement does not define "rolling store", but the term probably refers to a vehicle used as a mobile snack bar or lunch van, selling food and drinks to people on worksites or at festivals or others where the products are brought to the customers instead of the customers going to a place of business to eat and drink. Using this as an example, if the insured sells a ham sandwich from his rolling store to a construction worker and the worker later gets sick from that sandwich, the business auto form will not provide coverage for any claim arising out of that incident.

Motor Carriers and Truckers

A motor carrier is a person or organization who provides transportation by an auto as a commercial business. A trucker is a person or organization in the business of transporting goods, materials or commodities for another.

When Motor Carrier Coverage is needed, it can be provided under Coverage Form CA 00 20. The standard Business Auto Coverage Form CA 00 01 is to be used when coverage is provided for non-trucking operations only.

 Wrong Delivery of Liquid Products CA 23 05

This endorsement changes liability coverage under the business auto form and the motor carrier coverage form by adding an exclusion. CA 23 05 10 13 excludes coverage for bodily injury or property damage resulting from the delivery of any liquid into the wrong receptacle or to the wrong address if the injury or damage occurs after delivery has been completed. CA 23 05 seems to be superfluous in that the business auto form has a built-in exclusion (completed operations) for injury or damage arising out of the work of the named insured after that work has been completed. In any case, CA 23 05 is available if the insured wants it or the insurer requires it.

Motor Carriers – Excess Coverage for the Named Insured and Named Lessors for Leased Autos CA 23 08

When for-hire motor carriers are used by the insured, specific endorsements are available to designate which party is providing primary coverage, depending upon the existence of a written lease and hold-harmless agreement.  In some cases the lessee will shift the burden of risk back to the lessor (owner-operator) through a hold harmless agreement. Endorsement CA 23 08 10 13  is used when the named insured leases a for-hire auto under a written agreement that contains hold-harmless language protecting the insured. The lessor must be scheduled in the endorsement, and the covered auto leased by the insured will be covered on an excess basis. The insured must keep and maintain in their records a copy of the written lease showing that the hold harmless is to the benefit of the insured, as well as obtain and retain a certificate of insurance from the other party to the lease, or a copy of that party's Declarations page verifying that there is liability coverage in place with limits equal to or greater than those of the named insured.

The use of endorsement CA 23 08 can result in a considerable premium discount for the lessee. If the lessee's auto insurance is written on a gross receipts basis, then the gross receipts used in computing the lessee's premium will include only 15 percent of the amount to which the lessee is entitled for transporting property by the lessor's auto.

Endorsement CA 23 12, described below, is an alternate endorsement to be used when the lease agreement requires that the named insured lessee provide primary coverage for the leased auto.

Motor Carriers – Insurance for Non-trucking Use CA 23 09

Endorsement CA 23 09 10 13 restricts liability coverage to non-trucking use when the autos are neither rented, nor used for business purposes to carry property or to haul someone else's trailers. This is commonly referred to as bobtail coverage  Such autos must be described in the endorsement schedule. The endorsement further excludes as an insured anyone who is engaged in the transporting of property by auto for hire who is liable for the named insured's conduct (i.e., a trucker that has hired or otherwise employed the named insured).

Motor Carriers – Named Lessee as Insured CA 23 12

This endorsement CA 23 12 10 13 is available for use when the named insured leases a for-hire auto under a written lease agreement requiring that the named insured lessee provide primary coverage. The lessee named in the schedule will be covered as an insured for the owned or hired covered auto as long as it is leased in writing with a hold harmless agreement between the insured and the lessee. The endorsement deletes the policy's contractual liability exclusion with respect to the lease agreement between the named insured and the lessee, and it stipulates that liability coverage is primary for the lessee. If the named insured's policy is written on a gross receipts basis, gross receipts as used in the declarations is amended to include the actual remuneration received from leasing covered autos to the lessee. Finally, if coverage is canceled by the insurer, or the limit of liablity is reduced, the lessee will be given 30 days' advance notice of such action.

Trailer Interchange Fire and Fire and Theft Coverages CA 23 13

A trailer interchange agreement is a written agreement requiring one motor carrier to reimburse another party for any damage done to the other party's owned trailer while in the possession of the motor carrier. To cover the named insured motor carrier's legal liability in this situation, the Motor Carrier Coverage form CA 00 20 provides comprehensive, collision and specialized causes of loss coverage. Endorsement CA 23 13 10 13 enables the insured to purchase trailer interchange coverage for trailers not owned by the named insured and the equipment on these trailers; the coverage is for either of two more limited combinations of perils: fire coverage, and fire and theft coverage. Fire coverage includes loss caused by fire, lightning, or explosion, or by the sinking, burning, collision, or derailment of any conveyance transporting the trailer. Fire and theft coverage includes the same perils plus theft. The endorsement pays for loss by an insured peril only if the insured is legally obligated to pay damages for the loss, and the coverages must be shown in the endorsements schedule with an associated premium next to the coverage.

Truckers – Uniform Intermodal Interchange Endorsement Form UIIE – 1 CA 23 17

This endorsement applies to liability assumed under intermodal interchange agreements pursuant to the uniform intermodal interchange and facilities access agreement. (The parties to an intermodal interchange agreement might be, for example, a trucking firm and a railroad.) Endorsement CA 23 17 11 20 extends the liability insurance to apply to liability assumed by the named insured as "motor carrier participant" under Section F.4 of the uniform intermodal interchange and facilities access agreement. Under the terms of this endorsement, the motor carrier agrees to defend, hold harmless, and fully indemnify the indemnitees (without regard to whether the liability of the indemnitees is vicarious, implied by law, or as a result of the fault or negligence of the indemnitees) against any and all claims, lawsuits, and loss arising out of or related to the motor carrier's use or maintenance of the equipment during an interchange period; the performance of this agreement; and/or presence on the facility operator's premises. Payment under CA 23 17 is subject to limits of liability stated in the endorsement, and the endorsement expresses the insurance company's duty to provide certificates of insurance and at least thirty days' notice of cancellation or termination to the president of the Intermodal Association of North America.

Agricultural Produce Trailers – Seasonal CA 23 24

This endorsement CA 23 24 12 20 is applicable to farm trailers and semitrailers, with a gross vehicle weight exceeding 3,000 pounds, but is used only for seasonal hauling of agricultural produce, is principally garaged on a farm or ranch, is not used in any other occupation, and is  not used to haul livestock. The trailers must be scheduled on the endorsement, denoting the types of produce carried and the months or parts of months that the trailer is being used.

 Coverage for Injury to Leased Workers CA 23 25

With respect to the employers liability exclusion on the commercial auto coverage forms, the definition of employee is changed by endorsement CA 23 25 10 13 so that an employee does not include a leased worker. This is done so that a leased worker can seek damages for bodily injury, for example, under the named insured's business auto policy and not have the claim automatically excluded because the leased worker is considered an employee of the named insured. The endorsement basically makes the leased worker an employee of the leasing firm and allows the named insured's BAP to provide liability coverage for the named insured in case the leased worker files a claim against the named insured.

Motor Carrier Endorsement CA 23 30

This endorsement CA 23 30 11 20 is used to provide liability coverage for autos designated as motor carrier autos, used in the insured's motor carrier business. A motor carrier is defined in the BAP policy as a person or organization providing transportation by an auto in a commercial enterprise.

The for-hire auto liability is based on the cost of hire, which includes the total dollar amount of costs incurred by the insured for the hire of automobiles (including trailers and semitrailers); the total paid to all operators and drivers' helpers of hired automobiles; and the total dollar amount of any other associated operating costs of the hired automobiles, such as repair, maintenance and fuel. This coverage does not apply to the hiring of mobile or farm equipment, only autos.

If the insured has autos in their operations that are used as motor carriers that liability is based on gross receipts per $100, or on mileage per mile. Auto medical payments is also available for these insured autos. The endorsement contains a description of what is included in gross receipts and basically it includes amounts earned by the insured for shipping or transporting property no matter if this is originated by the insured or another carrier, but it doesn't include amounts paid to those carriers operating under their own permits, nor to advertising revenue, taxes collected and paid directly to the government, C.O.D. collections for merchandise costs, nor warehouse storage fees.

Comprehensive, specified causes of loss and collision coverage can be included for Trailer Interchange Coverage, if scheduled with an associated limit and premium for such coverage. This coverage cannot be stacked with coverage in the BAP policy for motor carrier autos.

Public or Livery Passenger Conveyance Exclusion CA 23 44

Certain endorsements are designed for the auto exposures associated with transportation network services and on-demand delivery services. To exclude coverage for accidents or losses arising out of an auto used as a public or livery conveyance for passengers, endorsement CA 23 44 11 20 may be attached, even if such autos are otherwise covered in the insured's transportation network services. The exclusion will not apply to business activities performed by the insured that are directly related to the specified Named Insured listed in the declarations. The endorsement defines a transportation network platform as an online-enabled application or digital netwrok used to connect passengers with drivers using vehicles for the purpose of providing prearranged transportation services for compensation. For example, this would include services such Uber or Lyft.

For more information on this endorsement and endorsement CA 23 45, refer to the contract analysis Public or Livery Passenger Conveyance and On-Demand Delivery Services Exclusion.

Public or Livery Passenger Conveyance and On-Demand Delivery Services Exclusion CA 23 45

The language of this endorsement CA 23 45 11 20 mirrors the language in CA 23 44. The added section of this endorsement excludes coverage for losses that occur while the insured is logged into the delivery network platform whether or not there are goods or passengers in the vehicle at the time the loss occurs.

For more information on this endorsement and endorsement CA 23 44, refer to the contract analysis Public or Livery Passenger Conveyance and On-Demand Delivery Services Exclusion.

Exclusion of Terrorism CA 23 84

This endorsement CA 23 84 10 13 is the standard exclusion of terrorism endorsement for auto policies.

Exclusion of Terrorism Involving Nuclear, Biological or Chemical Terrorism CA 23 85

This endorsement CA 23 85 10 13 excludes only terrorism attributed to nuclear, biological or chemical acts.

Silica or Silica-Related Dust Exclusion for Covered Autos Exposure CA 23 94

This exclusion endorsement CA 23 94 10 13 is a total exclusion for any silica or silica-related accident or loss under the auto policies. This is an ultra-hazardous exposure not intended to be covered under standard policies.

Amphibious Vehicles CA 23 97

Amphibious vehicles can be driven on land or into water, and come in many forms. Exclusion CA 23 97 10 13 can be attached to exclude these types of vehicles, and their equipment, when they are being launched into, used in or beached from the water. In other words, the vehicle can be covered while on land only. Note that the term "amphibious vehicle" is not defined in the endorsement to be all encompassing of any amphibious type.

Trailer Interchange Coverage CA 23 98

A trailer interchange agreement is a written agreement requiring one motor carrier to reimburse another party for any damage done to the other party's owned trailer while in the possession of the motor carrier. To cover the named insured motor carrier's legal liability in this situation, endorsement CA 23 98 10 13 can be attached to the BAP policy CA 00 01. This endorsement will provide comprehensive, collision, specified causes of loss, fire and fire and theft coverages for the other party's owned trailer or its equipment. The desired coverages must be shown on the endorsement's schedule with a premium next to it for the coverage to be effective.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.