BROCHURE: UNDERSTANDING THE ISO MOTOR CARRIER COVERAGE FORM

(October 2019)

Motor carriers need a coverage form that recognizes and responds to contractual relationships, non-owned vehicle exposures, and trailer interchanges that are everyday parts of the world of transportation-for-hire. The Insurance Services Office (ISO) CA 00 20–Motor Carrier Coverage Form is designed to provide the coverages every motor carrier needs for its vehicle operations.

Consult the coverage form for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

WHAT IS COVERED

• Liability Coverage protects you against legal obligations that arise from automobile accidents as well as lawsuits and their related costs. Liability limits of insurance should be high enough to handle serious injuries and the potential loss of earnings by a victim.
• Uninsured and underinsured motorist coverage protects you when another driver having either little or no insurance causes an accident. Limits should be similar to the amount you select for your liability insurance.
• Physical damage coverage on your vehicles protects your assets. Comprehensive, Specified Causes of Loss and Collision are the coverage options available. Deductibles should be as high as possible to maximize the benefits of your insurance premium.

• Trailer Interchange Coverage covers your legal liability for non-owned trailers.

Medical payments coverage and towing expense costs are additional coverages to consider.

WHO IS COVERED

The ISO Motor Carrier Coverage Form has a section that identifies parties that are insureds. In addition to the standard insureds, owners of non-owned power units and/or non-owned trailers are insureds when their autos are used in your business.

WHAT IS NOT COVERED

Every insurance coverage form or policy has limitations and exclusions. This is because either the coverages are needed by only specific types of businesses or the risk or exposure to loss is not considered insurable for one or more reasons. Some of the more common exclusions are:

• Expected Or Intended Injury
• Contractual
• Bodily Injury To Employees
• Care, Custody Or Control
• Handling Of Property
• Operations and Completed Operations
• Pollution
• War
• Wear and Tear
• Certain types of electronic devices

Always review the coverage form carefully for other limitations and exclusions and the details of the exclusions.

WHAT VEHICLES ARE COVERED

Available coverages are listed on the declarations. A box with numbers in it is next to the coverage. These are called symbols. They identify which autos covered and the coverages that apply to them. Symbols translate as follows:

61–All autos are covered. No additional symbols are needed

62–All autos you own are covered

63–Only private passenger autos you own are covered

64–Only autos you own that are commercial autos are covered

65–Autos you own for which no-fault coverage is required are covered

66–Autos you own for which uninsured motorists coverage is required are covered

67–Only scheduled autos are covered

68–Any auto you hire, borrow, or lease is covered

69–Trailers you possess that are under a written trailer or equipment interchange agreement are covered

70–Trailers owned by you but possessed by another under a written trailer interchange agreement are covered

71–Any auto not owned by you but used by an employee, volunteer, or partner for your business is covered but only for your benefit

79– Mobile equipment if subject to financial responsibility laws

LOSS CONDITIONS

You and the insurance company have responsibilities and rights following a loss. Review these to fully understand them.

• Appraisal For Physical Damage Loss
• Duties In The Event Of Accident. Claim, Suit Or Loss
• Legal Action Against Us
• Loss Payment–Physical Damage Coverages
• Transfer Of Rights Of Recovery Against Others To Us

ENDORSEMENTS

The ISO Motor Carrier Coverage Form provides broad coverage. Many endorsements are available for use with it that broaden, limit, or exclude coverage.

Note to subscribers:

Related Article: ISO Motor Carrier Coverage Form Endorsements Checklist can be attached.

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission from The Rough Notes Company, Inc.