Big I Insights

ISO Business Auto Form and Endorsement Revisions

By | October 23, 2020

Effective November 1, 2020, Insurance Services Office (ISO) is introducing 19 new endorsements for its business auto program. Many of these changes are the result of requests from IIABA’s Technical Affairs Committee.

Following is a brief description of each of these new endorsements.

New Endorsements

CA 04 15 11 20 – Garagekeepers Coverage For Autos And Watercrafts:
The current garagekeepers coverage endorsement (CA 99 37) extends legal liability coverage for damage to customer’s autos; however, this endorsement does not address watercraft. This new endorsement covers both customer-owned autos and watercraft.

CA 04 21 11 20 – Full Safety Glass Coverage:
Essentially, attachment of this endorsement removes deductibles for glass breakage losses. Some states mandate this coverage.

CA 04 22 11 20 – Earlier Notice Of Cancellation Provided By Us:
As the name suggests, this endorsement allows the carrier the option to provide an earlier notice of cancellation than the requirements found in the policy.

CA 04 39 11 20 – Volunteer Hired Autos:
Within the Who is an Insured section of the BAP, there is a specific exception (exclusion) for employees and/or volunteers who rent vehicles in their own name to conduct business for the named insured. Restated, there is no coverage from the BAP, all coverage comes from the driver’s personal auto policy (PAP).

Liability and physical damage coverage can be picked up and extended to employees by attachment of the CA 20 54 – Employee Hired Auto endorsement (a currently available endorsement). However, there was no endorsement available when a volunteer rented a vehicle in his or her personal name on behalf of the organization. ISO has introduced the CA 04 39 to give the option to extend liability and physical damage coverage for volunteers who rent vehicles for the benefit of the business.

CA 04 41 11 20 – Replacement Cost Coverage – Private Passenger Types:
Like many ISO endorsements, the title of the endorsement tells the reader what protection is granted, limited or excluded. This endorsement extends replacement cost coverage to private passenger type autos in the event of a total loss. To qualify for replacement cost:

  1. Comprehensive and Collision Coverage must be provided for that “auto” at the time of “loss”;
  2. The loss must occur within 24 months after the insured acquires the auto;
  3. The insured must be the original owner; and
  4. There must be fewer than 24,000 miles on the car at the time of the loss.

CA 04 43 11 20 – Waiver Of Transfer Of Rights Of Recovery Against Others To Us (Waiver Of Subrogation) – Automatic When Required By Written Contract Or Agreement:
The current “waiver of subrogation” form (CA 04 44) available for use with the Business Auto Policy (BAP) is a scheduled form, meaning that the entity must be specifically listed for the waiver to apply. ISO’s new CA 04 43 makes the waiver automatic when it is required in a contract.

CA 05 24 11 20 – Non-Ownership Liability Coverage For Volunteers:
This endorsement extends insured status to volunteers (a defined term in the endorsement) driving their personally owned vehicles on behalf of the organization. There are a few requirements to trigger the coverage:

  • The activity should be described in the schedule;
  • If the activity is not described, the volunteer must be acting on the insured’s behalf; and
  • The vehicle must be a “covered auto,” meaning the appropriate coverage symbol is in use (Symbol 1 or Symbol 9).

With the introduction of this endorsement, the CA 99 33, which is specific to social service agencies, is being withdrawn.

CA 05 25 11 20 – Partners Or Members As Insureds:
A great new coverage option every agent writing coverage for a partnership or LLC should request. This endorsement extends insured status to partners and members of an LLC when they are driving their personally owned vehicles for business purposes. Currently, there is a gap in coverage for these drivers.

CA 04 52 11 20, On-Hook Coverage:
ISO’s new “on hook” coverage is a somewhat niche product. This is not designed for dealers or other operations using the current garagekeepers coverage form (CA 99 37). This endorsement is designed for insureds that provide roadside assistance and towing but do not have a location where work is done.

CA 27 05 11 20 – Unmanned Aircraft Exclusion For General Liability Coverages:
A new Unmanned Aircraft (drone) exclusion is being added to the Auto Dealer Coverage Form (CA 00 25). Because the commercial general liability (CGL) program now has six drone-related exclusions and limitation, ISO, for consistency, is adapting versions of these endorsements for the auto dealer program. This new endorsement (CA 27 05) explicitly excludes all liability coverage related to drone use under the two general liability coverage parts in the auto dealers program, Coverage A (Bodily Injury and Property Damage) and Coverage B (Personal and Advertising Injury).

CA 27 06 11 20 – Unmanned Aircraft Exclusion For General Liability Coverages – (Bodily Injury And Property Damage Liability Only):
(See CA 27 05 for background.) This endorsement fully excludes coverage for bodily injury or property damage (Coverage A) resulting from the use of a drone. Coverage B (personal and advertising injury) is not addressed in this endorsement.

CA 27 07 11 20 – Unmanned Aircraft Exclusion For General Liability Coverages – (Personal And Advertising Injury Liability Only):
(See CA 27 05 for background.) This is the opposite of CA 27 06 in that it fully excludes coverage for personal and advertising injury resulting from the use of a drone. Bodily injury and property damage are NOT addressed in this endorsement.

CA 27 08 11 20 – Limited General Liability Coverage For Designated Unmanned Aircraft:
(See CA 27 05 for background.) Like the CA 27 05, this endorsement excludes bodily injury and property damage and personal and advertising injury caused by a drone unless the drone has been scheduled in the endorsement. Additionally, the operations or projects must be scheduled.

Once scheduled, the endorsement allows an optional aggregate limit specifically for drones. This aggregate limit is subject to the policy’s general aggregate limit.

CA 27 09 11 20 – Limited General Liability Coverage For Designated Unmanned Aircraft – (Bodily Injury And Property Damage Liability Only):
(See the CA 27 05 for background.) Similar to the CA 27 06, this endorsement addresses and excludes bodily injury or property damage resulting from the operation of a drone. Like the CA 27 08, an exception gives back coverage for bodily injury or property damage caused by scheduled unmanned aircraft provided the operation or projects are also scheduled.

CA 27 10 11 20 – Limited General Liability Coverage For Designated Unmanned Aircraft – (Personal And Advertising Injury Liability Only):
(See CA 27 05 for background.) Like the CA 27 07, this endorsement addresses and excludes personal and advertising injury resulting from the use of a drone. However, similar to the CA 27 09, an exception gives back coverage for personal and advertising injury caused by scheduled drones provided the operations or projects are also scheduled.

CA 27 15 11 20 – Amendment Of Personal And Advertising Injury Definition General Liability Coverages:
This endorsement removes coverage under Coverage B (personal and advertising injury) in the Auto Dealers Coverage Form. When this endorsement is attached, there is no longer coverage grated for oral or written publication that violates a person’s right of privacy.

CA 27 16 11 20 – Exclusion – Cross Suits Liability For General Liability Coverages:
This endorsement excludes coverage for any claim or suit brought by one named insured against another named insured.

CA 27 17 11 20 – Designated Location(s) Products And Work You Performed Aggregate Limit For Certain General Liability Coverages:
Somewhat similar to the CGLs’ option for a per location aggregate (CG 25 04), the insured can have the products and work you performed aggregate limits apply separately to each location. When the insured has multiple locations, this is a key endorsement.

CA 27 18 11 20 – Automatic Insured Status For Newly Acquired Or Formed Limited Liability Companies – Other Than Covered Auto Coverages:
In both the CGL and the Auto Dealers Coverage Form, the Who is an Insured section does not provide any protection to newly formed or acquired LLCs. In short, they must be listed to be covered from the very beginning. This endorsement allows coverage to extend automatically to newly acquired or formed LLCs.

However, any newly acquired for formed LLC is still subject to the newly acquired or formed limitations applicable to other entity types. Coverage ends the earlier of: 1) 90 days after formed or acquired; 2) the end of the policy period; or 3) listed on the policy.

About Christopher J. Boggs

Chris Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, is a veteran insurance educator. He is Executive Director, Big I Virtual University of the Independent Insurance Agents and Brokers of America. He can be reached at chris.boggs@iiaba.net. More from Christopher J. Boggs

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