Category 20, Specialized Types endorsements.

Category 23 – Commercial Auto endorsements. These are varying endorsements that address certain exposures and coverages not otherwise categorized.

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 25 – Garage Endorsements. Since the garage form is now the Auto Dealers Coverage Form, these endorsements apply to this newer form, CA 00 25.

Topics covered:

Broad form products coverage CA 25 01

Dealers driveaway collision coverage CA 25 02

False pretense coverage CA 25 03

Fire, fire and theft and limited specified causes of loss coverage for dealers CA 25 04

Locations and operations not covered CA 25 07

Additional insured – general liability coverages – owners of leased or rented land or premises CA 25 09

Named driver collision coverage CA 25 11

Full covered autos liability limit for customers CA 25 15

Auto dealers coverage form – general liability coverages – total pollution exclusion CA 25 16

Exclusion – Year 2000 computer-related and other electronic problems CA 25 18, CA 25 19, CA 25 20, CA 25 24, CA 25 25

Abuse or  molestation exclusion for general liability coverages CA 25 28 

Additional insured – general liability coverages – concessionaires trading under your name CA 25 29

Additional insured – general liability coverages – controlling interest CA 25 30

Additional insured – general liability coverages – grantor of licenses – automatic status when required by lessor CA 25 31

Additional insured – general liability coverages – grantor of licenses CA 25 32

Auto dealers coverage form – general liability coverages – total pollution exclusion with a building heating, cooling and dehumidifying equipment exception and a hostile fire exception CA 25 36

Fungi or bacteria exclusion – general liability coverages CA 25 37

Limited fungi or bacteria coverage for general liability coverages CA 25 38

Silica or silica-related dust exclusion for general liability coverages CA 25 39

Additional insured – general liability coverages – lessor of leased equipment – automatic status when required in lease agreement with you CA 25 45

Additional insured – general liability coverages – co-owner of insured premises CA 25 46

Limited contractual liabilty coverage for personal and advertising injury CA 25 47

Employee benefits liability coverage CA 25 48

Limited product withdrawal expense endorsement CA 25 49

Exclusion – damage to rented premises CA 25 50

Exclusion – designated products CA 25 51

Exclusion – locations and operations medical payments CA 25 52

Exclusion – newly acquired or formed auto dealership CA 25 53

Exclusion – personal and advertising injury liability coverage CA 25 54

Exclusion – products and work you performed CA 25 55

Exclusion – designated work you performed CA 25 56

Communicable disease exclusion for general liability coverages CA 25 57

Amendment of limits of insurance – general liability coverages CA 25 58

Designated location(s) general liability aggregate limit for certain general liability coverages CA 25 59

Worldwide general liability coverages CA 25 60

Expanded coverage territory for general liability coverages – additional scheduled countries CA 25 61

Changes to the bankruptcy or insolvency exclusion for acts, errors or omissions liability coverages CA 25 62

Total bankruptcy or insolvency exclusion for acts, errors or omissions liability coverages CA 25 65

Customer complaint legal defense coverage CA 25 66

Extended reporting period endorsement for employee benefits liability coverage CA 25 67

Broad Form Products Coverage CA 25 01

Endorsement CA 25 01 10 13 provides coverage for the named insured dealership's products at a scheduled limit, in excess of a $500 deductible.

Dealers Driveaway Collision Coverage CA 25 02

It is customary to the auto dealers operations to move vehicles on, off and around their lots, and this endorsement is designed to provide coverage for these operations. As such, endorsement CA 25 02 10 13 provides collision coverage while autos are being driven, towed, or carried on an owned or insured-hired auto or trailer. Coverage is in effect from the auto's point of purchase or distribution, to its destination point, using mileage-based rating. The coverage is not available however to the drive-away contractors (refer to endorsement CA 20 05).

False Pretense Coverage CA 25 03

Endorsement CA 25 03 10 13 applies only to the Auto Dealers Coverage Form. The endorsement provides coverage if the insured has voluntarily parted with a vehicle because of trick, scheme or false pretenses of another party, or has acquired a vehicle from someone who did not have legal title to the vehicle. For more detailed information on this endorsement, refer to Auto Dealers Coverage and False Pretenses.

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

Under CA 00 25, vehicle parts, materials or accessories kept as merchandise for sale and not permanently attached to autos, are not covered. Endorsement CA 25 04 10 13 may be used to provide limited coverage for specifically scheduled autos designated by placing a "x" under the applicable financial interest. The autos are shown as covered by placing one or more of the symbols next to  the coverage. The limited perils offered for coverage are fire, fire and theft, or the specified causes of loss of fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, or the sinking, burning, collision or derailment of any conveyance transporting the covered auto.

The fire coverage includes fire caused by lightning or explosion, or the sinking, burning, collision or derailment of any conveyance transporting the covered auto. Fire and theft coverage includes loss caused by any of these, plus loss caused by theft.

Locations and Operations Not Covered CA 25 07

Endorsement CA 25 07 10 13  is used to exclude liability coverage for locations or operations as shown in the endorsement schedule. For example, if an auto dealer insured has a separate body shop and the carrier does not provide coverage for that body shop, then this endorsement can be used to exclude the body shop from both premises and operational liability coverage under the policy.

Additional Insured – General Liability Coverages – Owners of Leased or Rented Land or Premises CA 25 09

Endorsement CA 25 09 10 13 provides liability coverage for the owners of land or premises used by the insured, as to their ownership interest, if permitted by law. If there is a contract or agreement in place, the coverage will not extend beyond what is stated in such contract or agreement. The address of other detailed description of the premises must be shown in the endorsement, as well as its ownership status. Any alterations, new construction or demolition operations by or for the designated owner are not covered by the endorsement. The endorsement of course does not increase the policy's limit of liability. So if an auto dealership insured rents a lot to store excess autos, then the owner of that lot has a financial interest in that land and as such can be added as an additional insured using this endorsement. If the insured erects a sign or adds any structure to the lot, the endorsement will not provide liability coverage arising out of that sign or structure.

Named Driver Collision Coverage CA 25 11

Endorsement CA 25 11 10 13  is used to provide collision coverage for specifically named driver(s) while they are either driving or riding in an auto owned by the dealership insured. The coverage is for short distances, only, up to 50 miles, such as for auto test drives, or taking an auto to the car wash or body shop.

Full Covered Autos Liability Limit for Customers CA 25 15

Under CA 00 25, customers of the dealership are provided liability coverage up to the compulsory or financial responsibility law limits, if not already covered up to the required limits. This endorsement CA 25 11 10 13 removes the exclusion for customers from the Who is an Insured section of the policy. The exclusion has exceptions if the customer has no other insurance or has insurance less than the financial responsibility law limits where the auto is garaged. By removing the exclusion, customers are now covered under the policy's liability coverage.

Auto Dealers Coverage Form – General Liability Coverages – Total Pollution Exclusion CA 25 16

Endorsement CA 25 16 10 13 is an absolute pollution exclusion used to make certain there is no coverage whatsoever for any pollution exposure. For instance, this endorsement may be used for those insureds who have separate pollution coverage in place, such as an underground storage tank policy or a pollution liability policy.

Exclusion – Year 2000 Computer-Related and Other Electronic Problems CA 25 18, CA 25 19, CA 25 20, CA 25 24, CA 25 25

Prior to January 1, 2000, insurers recognized that failure of computer systems to recognize a year having "00″ as the last two digits could cause a wide range of problems for any business. Financial systems could shut down or be unable to recognize, process, or post transactions. Critical mechanical systems, such as those needed to operate aircraft, automobiles or even medical life support equipment could also have been affected. There was concern that liabilities might arise even years after the date change. As such, these exclusions, known as date-recognition or Y2K exclusions, were issued because of perceived problems and potential liability arising from computer systems failing to recognize the last two digits of the year 2000.

Abuse or Molestation Exclusion for General Liability Coverages CA 25 28

Endorsement CA 25 28 10 13  is currently only available in the states of Florida and New York, and the Virgin Islands. The endorsement excludes the general liability coverages of bodily injury, property damage, and personal and advertising injury liability arising out of any abuse or molestation, actual, alleged, or threatened, of anyone while in the care, custody or control of the insured, by anyone for whom the insured would have responsibility.

Additional Insured – General Liability Coverages – Concessionaires Trading Under Your Name CA 25 29

Many dealerships have a customer service area where they provide customers with concessions. The policy does not provide coverage for concessionaires; thus endorsement CA 25 29 11 20 is used to provide additional insured coverage when these concessions are operating under the dealership, at the insured dealership's premises. Such concessionaires must be scheduled in the endorsement. Concessionaires operating at separate locations or those operating under their own name cannot be added as additional insureds under this endorsement.

If there is a contract or agreement in place, the coverage will not extend beyond what is stated in such contract or agreement, and the endorsement does not increase the policy's limits of liability.

Additional Insured – General Liability Coverages – Controlling Interest CA 25 30

Endorsement CA 25 30 11 20 is used to provide coverage for controlling interests with respect to their liability arising out of either their financial control of the named insured; or premises they own, maintain or control while the named insured leases or occupies these premises.

The name of the person or organization with the controlling interest must be shown in the endorsement. Any alterations, new construction or demolition operations by or for the controlling interest are not covered by the endorsement. If there is a contract or agreement in place, the coverage will be the lesser of the amount required by the contract or agreement, or the applicable limit of liability. The endorsement does not increase the policy's limits of liability.

Additional Insured – General Liability Coverages – Grantor of Licenses – Automatic Status When Required by Lessor CA 25 31

Endorsement CA 25 31 11 20 grants automatic additional insured status to persons or organizations granting license(s) to the insured dealership, when both parties have agreed in writing in a lease agreement to provide such coverage to the grantor(s). There is no need to schedule each grantor separately in such cases. Coverage ends when the license expires, or is terminated or revoked.

The coverage will be the lesser of the amount required by the contract or agreement, or the applicable limit of liability. The endorsement does not increase the policy's limits of liability.

Additional Insured – General Liability Coverages – Grantor of Licenses CA 25 32

Endorsement CA 25 32 11 20 provides the same coverage as CA 25 31,  but does so on a scheduled basis. As such, the grantor(s) must be scheduled in the endorsement as the coverage is not automatic.

Auto Dealers Coverage Form – General Liability Coverages – Total Pollution Exclusion With a Building Heating, Cooling and Dehumidifying Equipment Exception and a Hostile Fire Exception CA 25 36

Endorsement CA 25 36 10 13 is the most used of the available pollution exclusion endorsements. The endorsement excludes pollution exposures and cleanup costs, but contains an exception for smoke, fumes, vapor or soot arising out of and originating from a building's heating, cooling, and dehumidying equipment; as well as providing an exception arising out of smoke, heat and fumes from a hostile fire. A hostile fire means one that becomes uncontrollable, or breaks out from where it was intended to be. So if the dealership calls in an equipment contractor to repair their heating system, and in the process the equipment overheats and ejects smoke and fumes causing the insured's patrons to get sick, the liability for this bodily injury will not be excluded by this endorsement. Likewise, if the heating system catches fire that spreads to customers' autos at the dealership, the property damage to the customers' autos will be covered.

Fungi or Bacteria Exclusion – General Liability Coverages CA 25 37

Endorsement CA 25 37 10 13 excludes liability and associated costs arising out of fungi or bacteria on or within a building or structure, including its contents. There is an exception for fungi or bacteria in, on, or contained in, a good or product intended for bodily consumption; for example, foods and body soaps. A definition is included for fungi, which means any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or by-products produced or released by fungi.

Limited Fungi or Bacteria Coverage for General Liability Coverages CA 25 38

Endorsement CA 25 38 10 13 contains the same exclusion as CA 25 37, with the same exception for fungi or bacteria in, on, or contained in, a good or product intended for bodily consumption. This endorsement also allows for fungi or bacteria liability incident coverage at a scheduled aggregate limit. A "fungi or bacteria incident" is defined to mean an incident which would not have occurred, in whole or in part, but for the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of, any "fungi" or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed concurrently or in any sequence to such injury or damage. As long as it does not exceed the fungi or bacteria aggregate limit in the endorsement, the coverage will extend to "bodily injury" or "property damage" arising out of a "fungi or bacteria incident" under the Locations And Operations Medical Payments Limit, the General Liability Bodily Injury And Property Damage Liability Each "Accident" Limit, and Paragraph 5. the Damage To Premises Rented To You Limit. Given that it is an aggregate limit, all fungi or bacteria incidents are included within that limit, and once exhausted the coverage ceases. The fungi or bacteria incident limit does not apply to liability arising out of fungi or bacteria in, on, or contained in, a good or product intended for bodily consumption

Silica or Silica-Related Dust Exclusion for General Liability Coverages CA 25 39

Endorsement CA 25 39 10 13 is used to exclude liability coverage for silica or silica-related dust exposures for other than covered autos. To exclude these exposures for covered autos, use endorsement CA 23 94. Both endorsements contain the same definitions for silica and silica-related dust to make it clear what is being excluded by the endorsements.

Additional Insured – General Liability Coverages – Lessor of Leased Equipment – Automatic Status When Required in Lease Agreement With You CA 25 45

Endorsement CA 25 45 11 20 grants automatic additional insured status to persons or organizations from whom the insured dealership leases equipment, when both parties have agreed in writing in a lease agreement to provide such coverage to the lessors. There is no need to schedule each lessor separately in such cases. Coverage ends when the lease expires.

The coverage will be the lesser of the amount required by the contract or agreement, or the applicable limit of liability. The endorsement does not increase the policy's limits of liability.

Additional Insured – General Liability Coverages – Co-Owner of Insured Premises CA 25 46

When a dealership insured is co-owner of a premises, the other co-owner may be granted additional insured status as to the extent of liability arising out of their ownership of the premises by use of endorsement CA 25 46 11 20. The co-owner must be scheduled on the endorsement and the premises identifed.

The coverage will be the lesser of the amount required by the contract or agreement, or the applicable limit of liability. The endorsement does not increase the policy's limits of liability.

Limited Contractual Liability Coverage for Personal and Advertising Injury CA 25 47

A limited amount of personal and advertising injury liability may be provided as required by contract or agreement by use of endorsement CA 25 47 10 13. The limited coverage is for personal and advertising injury liability that would be imposed on the insured by law regardless of the contract or agreement; or tort liability which the insured has assumed in the scheduled contract or agreement that would be imposed by law regardless of the contract or agreement; personal and advertising injury that occurs prior to the scheduled contract or agreement; and the injury arises out of false arrest, detention or imprisonment.

Employee Benefits Liability Coverage CA 25 48

Endorsement CA 25 48 10 13 is used to provide claims-made liability coverage for damages because of the insured's negligent acts, errors, or omissions, committed in the administration of an employee benefits program, as described in the endorsement schedule. This is a separate coverage form with its own set of exclusions, conditions, deductible, etc.

Limited Product Withdrawal Expense Endorsement CA 25 49

An auto dealership insured may receive reimbursement for certain expenses incurred because of a product withdrawal due to its own decision to withdraw a product or by order of a governmental entity by use of endorsement CA 25 49 11 20. Note that this is not liability coverage, but rather a reimbursement option for specific expenses up to an aggregate limit designated in the endorsement schedule and in accordance with the endorsement's terms and conditions.

The expenses must be incurred and reported within one year of the product's withdrawal and the product that is the subject of the withdrawal must have been produced after the designated cut-off date in the schedule. This is a separate coverage form with its own insuring agreement and set of exclusions, conditions, deductible, definitions, etc.

Exclusion – Damage to Rented Premises CA 25 50

To completely remove all coverage for damage to premises rented to the insured, even damage by fire, use endorsement CA 25 50 10 13. Attaching this endorsement removes the coverage for Damage to Premises Rented to You, and if there is any limit shown in the declarations for this coverage, it will not apply.

Exclusion – Designated Products CA 25 51

In connection with the Products And Work You Performed Aggregate Limit applicable to bodily injury and property damage arising out of the insured's product that is sustained away from the auto dealership operations, certain products may be excluded from this coverage by designating those products in endorsement CA 25 51 11 20.

Exclusion – Locations and Operations Medical Payments CA 25 52

The Auto Dealers Coverage Form includes Auto Dealers Locations And Operations Medical Payments Coverage. Endorsement CA 25 52 10 13 may be used to exclude this coverage, while still providing first aid coverage for accidental bodily injury of others. Coverage for any other medical payments will not be covered, including necessary medical, surgical, diagnostic imaging and dental services, including prosthetic devices; and ambulance, hospital, professional nursing and funeral services.  An "accident" includes continuous or repeated exposure to the same conditions resulting in "bodily injury" or "property damage". So if a customer is looking at autos for sale at the dealership and trips going into the showroom, there will be first aid coverage for the customer. However, if the customer has to be transported to the hospital by ambulance for diagnostic testing or treatment, these expenses will not be covered.

Exclusion – Newly Acquired or Formed Auto Dealership CA 25 53

To exclude coverage for newly acquired or formed auto dealerships, use endorsement CA 25 53 10 13. The coverage will be excluded throughout the policy, for general liability, acts, errors or omissions coverage, employee benefits liabiity, or customer complaint legal defense coverage, as applicable.

Exclusion – Personal and Advertising Injury Liability Coverage CA 25 54

Use endorsement CA 25 54 10 13 to exclude coverage for personal and advertising injury liability from the auto dealership policy in its entirety.

Exclusion – Products and Work You Performed CA 25 55

The auto dealership coverage form includes liability coverage for products and work performed by the insured away from the insured's auto dealer operations at a separate aggregate limit. "Work you performed" is a defined term that includes work that someone performed on behalf of the insured; and the providing of or failure to provide warnings or instructions. "Products" is also a defined term and it includes goods or products made or sold in an auto dealership by the insured or an auto dealership acquired by the insured; and the providing of or failure to provide warnings or instructions. This work and performance liability coverage can be excluded by attaching endorsement CA 25 55 10 13.

Exclusion – Designated Work You Performed CA 25 56

There are circumstances where liability for certain of the insured's work away from their auto dealer operations is not desirable for coverage. Endorsement CA 25 56 11 20 can be tailored to exclude such coverage for only those work performances shown in the schedule, while keeping intact coverage for other work the insured may conduct away from the premises.

Communicable Disease Exclusion for General Liability Coverages CA 25 57

Endorsement CA 25 57 10 13 is a standard liability exclusion endorsement precluding coverage for liability arising out of the actual or alleged transmission of a communicable disease in its entirety, in all aspects and circumstances.

Amendment of Limits of Insurance – General Liability Coverages CA 25 58

Endorsement CA 25 58 10 13 may be used to amend the limits of insurance after the inception of the policy. The new limits must be shown in the schedule of the endorsement.

Designated Location(s) General Liability Aggregate Limit for Certain General Liability Coverages CA 25 59

The policy may be changed from a policy limit of insurance to a per-designated location limit by use of endorsement CA 25 59 10 13. For those locations shown in the endorsement schedule, a separate aggregate limit applies that is equal to the amount of the general liability aggregate limit shown in the policy declarations. For purpose of the endorsement, "location"  is defined as premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right-of-way of a railroad.

Worldwide General Liability Coverages CA 25 60

Endorsement CA 25 60 10 13 can be used  to extend the coverage territory to anywhere in the world, except for any country or jurisdiction which is subject to a U.S. trade or other U.S. economic sanction or embargo. Specific guidelines for suit handling and reimbursement payments are included in the form provisions. Attaching this endorsement for example would enable a dealership insured to conduct operations in several countries as a normal part of their operations.

Expanded Coverage Territory for General Liability Coverages – Additional Scheduled Countries CA 25 61

Endorsement CA 25 61 10 13 differs from theh previously discussed worldwide coverage territory endorsement CA 25 60, in that the coverage for each territory expansion must be shown in the endorsement schedule. Coverage will be expanded to anywhere else in the world under three conditions: first, that the claim for damages is caused by an insured who permantenlly lives within the standard coverage territory of the U.S., Puerto Rico, and Canada, and the scheduled country(ies); and while that insured is temporarily outside one of those places; and either the personal and advertising injury takes place via internet or other electronic means or communication, or the bodily injury and property damage is caused by one of the insured's products sold for use in the expanded covered territory. Note that coverage is extended for the insured's products, but not the insured's work. The claim for damages must  be due to the insured's responsibility to pay damages as determined in a suit on the merits, in the expanded coverage territory; or in a settlement agreed to by the insurer. Specific guidelines for suit handling and reimbursement payments are included in the form provisions.

An example of where this form might be needed is when an insured is selling covered autos through internet sales that are in certain countries other than the United States.

Changes to the Bankruptcy or Insolvency Exclusion for Acts, Errors or Omissions Liability Coverages CA 25 62

Endorsement CA 25 62 10 13 is only applicable if endorsement CA 25 65 is on the policy. In this case, if the credit bureau rating stated in the exception to that endorsement changes, then endorsement CA 25 62 should be completed to reflect that rating change.

Total Bankruptcy Or Insolvency Exclusion For Acts, Errors Or Omissions Liability Coverages CA 25 65

Endorsement CA 25 65 10 13 is used to exclude all damages arising out of the bankruptcy or insolvency of any insurer or other entity assuming the risk. This encompasses any entity in which the insured has placed or obtained insurance for a customer. So for example, if the insurer covering a customer's risk is solvent, but the carrier's reinsurer goes bankrupt, this endorsement would exclude all damages arising out of the insolvency of that reinsurer.

Customer Complaint Legal Defense Coverage CA 25 66

Endorsement CA 25 66 10 13 is used to provide coverage for defense expenses only that arise out of the sale, service, or repair of an auto in the named insured's auto dealer operations arising out of a customer's complaint of such things. The coverage is subject to a per customer complaint limit with an aggregate. The coverage is provided as its own coverage form containing an insuring agreement, exclusions, who is an insured, limits of insurance, conditions, and added definitions for customer complaint and defense expenses.

Extended Reporting Period Endorsement for Employee Benefits Liability Coverage CA 25 67

Endorsement CA 25 67 10 13 is used when an insured purchases an extended reporting period in connection with the employee benefits liability coverage endorsement CA 25 48.

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