ISO AUTO DEALERS/GARAGE COVERAGE FORM ARCHIVE

(October 2019)

This is a repository of articles and analyses relating to earlier editions of this coverage form.

Archive Index
Analysis	CA 00 05–Garage Coverage Form Analysis (03/10 edition)
Analysis	CA 00 05–Garage Coverage Form Analysis (03/06 edition)
Analysis	CA 00 05–Garage Coverage Form Analysis (10/01 edition)
Endorsements	ISO Garage Coverage Form Available Endorsements And Their Uses
Comparison	Compare: ISO CG 00 01 To ISO CA 00 05 And CA 25 14
Comparison	Compare: CA 00 01–Business Auto Coverage Form To CA 00 05–Garage Coverage Form
Comparison	Compare: CA 00 01–Business Auto Coverage Form To CA 00 05–Garage Coverage Form Knowledge Tester Quiz
Comparison	Compare: CA 00 05–Garage Coverage Form 03 10 Edition To The 03 06 Edition
Comparison	Compare: CA 00 05–Garage Coverage Form 03 10 Edition To The 03 06 Edition Knowledge Tester Quiz
Comparison	ISO CGL to Garage Policy (10/01 edition)
Comparison	1997 V. The 1993 Garage Program
Comparison	1997 V. The1993 Garage Program Knowledge Tester Quiz
Comparison	Comparison Of The 02/99 Multistate Garage Policy To The 07/97 Edition
Comparison	Comparison Of The 02/99 Multistate Garage Policy To The 07/97 Edition Knowledge Tester Quiz
Declarations	Garage Declarations
Special Analysis	CA 25 14–Broadened Coverage–Garages (03/06 Edition)

CA 00 05–GARAGE COVERAGE FORM ANALYSIS

INTRODUCTION

Vehicle dealerships are unique because the lines between their general liability and automobile liability exposures blur and overlap in many areas. To address this, the Insurance Services Office (ISO) developed CA 00 05–Garage Coverage Form. It covers both exposures under a single coverage form while eliminating coverage gaps and overlaps. It covers premises liability, products liability, automobile liability, and physical damage to covered autos, as well as garagekeepers coverage for customer's autos. A number of endorsements are available to broaden or restrict coverage.

This analysis is based the 03/10 edition of this coverage form. Changes from the previous edition are in bold print.

CA 00 05–GARAGE COVERAGE FORM ANALYSIS

CA 00 05 opens by defining the terms you or your as the named insured and we, us and our as the insurance company providing the coverage. Named insured is not defined. As a result, it means only the entities on the declarations.

SECTION I–COVERED AUTOS

Numerical symbols are used to determine the autos insured and the coverages provided. These symbols are defined in the Description Of Covered Auto Designation Symbols.

The sample Garage Declarations has spaces to insert the symbol or symbols next to each business auto coverage. The only coverages provided are those having a symbol or symbols indicated and only those autos designated by the symbol or symbols are covered autos for that coverage.

A. Description Of Covered Auto Designation Symbols

21–Any Auto

This is the broadest symbol designation and has no limitations or restrictions. Vehicles defined as autos in this coverage form are covered, subject to certain exclusions and conditions. Because of the broad scope of the coverage provided, many insurance companies are reluctant to use this symbol. Even if a company uses it for liability, it may not do so for physical damage. No other symbol should appear in the same box when Symbol 21 is used.

Note: Section VI–Definitions defines auto as a land motor vehicle, trailer or semitrailer.

22–Owned Autos Only

This symbol means that any auto the named insured owns is covered, including those it acquires after the inception date. In addition, any owned or non-owned trailer pulled by an owned vehicle is covered if this symbol is used with liability coverage.

Note: The definition of trailer includes semitrailers. See Section VI–Definitions.

23–Owned Private Passenger Autos Only

All private passenger type autos that the named insured owns are covered when this symbol is used. This includes any private passenger type vehicle it acquires after the inception date.

24–Owned Autos Other Than Private Passenger Autos Only

This symbol means that all autos other than private passenger types that the named insured owns are covered, as well as those it acquires after the inception date. Similar to Symbol 22 above, the liability coverage provided is extended to any owned or non-owned trailer pulled by this type of owned vehicle.

Example: Paula's Pre-Owned Autos is insured under CA 00 05–Garage Coverage Form. Paula's sells and services autos. A new mechanic takes a one-ton stake truck, visits several junkyards, and purchases some used parts and equipment. By the time he gets to the last one, the truck is already loaded but this is where he needs to pick up an engine block needed that day. The junkyard owner loads the engine block on one of his trailers and attaches it to Paula's truck. Because the trailer is attached to the truck, Paula's Garage Coverage Form's liability coverage applies to it.

25–Owned Autos Subject To No-Fault

This symbol applies to vehicles licensed or garaged in a state where no fault coverage is available but only to autos required to have such coverage. Coverage also extends to such autos acquired after the inception date.

26–Owned Autos Subject To A Compulsory Uninsured Motorists Law

This symbol applies to any auto the named insured owns garaged or licensed in a state that requires the named insured to carry uninsured motorists coverage. It also applies to any auto it acquires after the inception date.

Note: This symbol does not apply to vehicles licensed or operated in states that allow the named insured to formally reject uninsured motorists coverage.

27–Specifically Described Autos

Only autos specifically scheduled that have a premium charge are covered. Similar to Symbol 22 above, the liability coverage provided extends to any owned or non-owned trailer pulled by this type of owned vehicle.

28–Hired Autos Only

This symbol covers autos the named insured leases, hires, rents or borrows but it has a significant limitation. It does not include leased, hired, rented, or borrowed vehicles owned by an employee, partner, LLC member, or by members of any of the preceding groups’ households.

29–Non-Owned Autos Used In Your Garage Business

This symbol applies only to autos the named insured uses in its business that it does not own, lease, hire, rent or borrow. Autos owned by employees, partners in the case of a partnership, members in the case of limited liability companies, or members of the preceding group’s households are included. Covered status exists only while those non-owned autos are used in the named insured’s garage business.

Example: Paul recently started his job at The Friendly Garage, was learning the ropes, and cheerfully agreed to his boss' request to make a run to the deli for lunch. The boss and eight other employees wrote down their orders, Paul called the order in, and then headed out to pick them up. While driving back, a drink lid popped off and he bent over to readjust it. At that exact moment, the car in front of him stopped and Paul rammed it, setting off a chain reaction that eventually damaged six vehicles. The drivers brought claims against Paul and The Friendly Garage upon learning that Paul was traveling on company business. Friendly's owner and his insurance company are still discussing whether the lunch run qualifies as part of the garage business.

30–Autos Left With You For Service, Repair, Storage Or Safekeeping

This symbol applies to customer autos, including autos of employees and their household members, left with the named insured for service, repair, storage or safekeeping for which a fee for the services provided is charged.

31–Dealers Autos (Physical Damage Coverages)

This symbol applies to any auto and the interests of any loss payees in those autos in Item Seven of the declarations.

Manuscript Symbol

An additional manuscript symbol not mentioned in the Garage Coverage Form is available by adding endorsement CA 99 54–Covered Auto Designation Symbol. Symbol 32 is available for the Garage Coverage Form and the autos considered covered must be listed and described on the endorsement.

Example: Jane’s dealership displays the first automobile it ever sold. It is still in working condition but is driven only in parades and commercials for the dealership. Since it is insured on an antique auto policy, it is not to be covered for physical damage coverage on Jane’s Garage Coverage Form. The insurance company agrees to provide symbol 21 for liability and symbol 32 for physical damage. CA 99 54–Covered Auto Designation Symbol is attached with the wording, “Except for the 1906 Ford, any auto and the interests in those autos described in Item Seven of the declarations."

B. Owned Autos You Acquire After The Policy Begins

1. If Symbols 21–Any Auto, 22–Owned Autos Only, 23–Owned Private Passenger Autos Only, 24–Owned Autos Other Than Private Passenger Autos Only, 25–Owned Autos Subject To No-Fault, or 26–Owned Autos Subject To A Compulsory Uninsured Motorists Law are entered on the declarations, autos of the type described by such symbols that the named insured acquires during the policy period are also covered. This means that a newly acquired auto that does not match the symbol is not covered until the insurance company is notified.

Example: Lincoln Motors uses symbol 23 for liability coverages. When a one-ton stake truck is purchased during the policy year, there is no liability coverage for it until it is reported to the insurance company. When a Kia Soul is purchased during the policy year, it automatically has liability coverage and reporting it to the insurance company is not required.

2. When symbol 27–Specifically Described Autos is used, new autos acquired during the policy period are covered if the insurance company either covers all vehicles the named insured already owns or if the new vehicle replaces a vehicle already scheduled. However, the named insured must inform the insurance company of the acquisition within 30 days of the date it was acquired.

Example: Lincoln Motors uses symbol 27 for physical damage coverage. All vehicles are covered for comprehensive coverage but not all have collision coverage. The Kia Soul and the one-ton stake truck both have comprehensive coverage for up to 30 days. Neither has collision coverage because not all vehicles on the schedule have collision coverage. Once reported to the company, the appropriate coverage can be added.

C. Certain Trailers And Temporary Substitute Autos

When liability coverage is provided, two additional categories of vehicles are added as covered vehicles.

1. Utility trailers having a load capacity of 2,000 pounds or less and designed for travel on public roads are covered while being pulled by a covered auto.

Note: A semi-trailer is not covered. There is no requirement that the utility trailer be owned. This means that liability coverage applies to a utility trailer the named insured rents to transport a piece of machinery as long as the load capacity is 2,000 pounds or less.

2. If the named insured's covered, owned auto is temporarily out of service for repair or service or due to breakdown, repair, servicing, loss or destruction, a non-owned, temporary substitute for it is covered but only if the named insured uses it with the owner's permission.

Example: Scenario One: All of Greatful Garage's autos are insured under CA 00 05–Garage Coverage Form using Symbol 22–Owned Autos. Karl, one of the partners, is given the opportunity to drive a newly introduced electric car that the manufacturer would like Greatful Garage to consider selling. Karl strikes a pedestrian but has no coverage under Greatful Garage’s coverage form because the electric car is not a substitute vehicle

Note: Cars temporarily substituting for owned vehicles being repaired, maintained or serviced are covered.

Example: Scenario Two: All of Greatful Garage's autos are insured under CA 00 05–Garage Coverage Form, using Symbol 22–Owned Autos. Karl, one of the partners, returns his electric car to the manufacturer for repairs. The manufacturer provides him with a substitute vehicle until the repairs can be completed. When Karl strikes a pedestrian, coverage applies because the vehicle is a substitute for a covered vehicle.

SECTION II–LIABILITY COVERAGE

A. Coverage

This coverage form provides two types of liability coverage. The first is similar to commercial general liability coverage and the second is similar to business auto coverage.

1. Garage Operations–Other Than Covered Autos

The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury or property damage covered by this insurance. The injury or damage must be caused by an accident and be due to garage operations. Accidents due to ownership, maintenance or use of covered autos are not covered.

The insurance company has the right and duty to defend any insured against suits seeking damages covered by this insurance. It alone decides how to handle that obligation. It has the right to decide what to investigate, whether the claim is valid, and whether settling the claim or contesting it is appropriate. The insurance company’s obligation to defend ends once an action is resolved by paying a settlement or a court award that exhausts the limit of insurance that applies. Coverage applies if the accident takes place in the coverage territory and the bodily injury or property damage occurs during the policy period. In addition, coverage does not apply to a loss prior to the policy period even if it is a continuation or a recurrence that takes place within the current policy period. Coverage for any injury or damage that occurs in the current policy period applies to its continuation, change or resumption beyond the end of the policy period.

Bodily injury or property damage is considered to have been known at the time any insured or authorized and responsible employee:

Reported all or part of the injury or damage to the insurance company
Received a written or verbal demand or claim for damages because of the injury or damage
Became aware that injury or damage had occurred or was beginning to occur by any means

Note: This is consistent with the fact that insurance coverage is intended to insure against fortuitous events. Allowing an insured to purchase coverage for a loss already known to have occurred is unfair to the insurance company and could be fraudulent.

Example: Jamie Phillips works for ABC Garaging. He handles customer personal property that is lost or found on the premises. Jamie has known for a few weeks that a large metal waste container has a broken wheel that causes it to tip over without warning. He simply picks it up whenever it falls over and has not mentioned it to any of the parking attendants or the shift supervisors. As an attendant turns a corner while parking an insured’s BMW, the waste container suddenly tips over and smashes the side of the car. The impact startles the attendant, causes her to lose control, and the vehicle crashes into Jamie’s office. Chargemore Insurance Company tries to deny coverage when it discovers that Jamie knew about the hazardous container. However, it changes its decision when ABC's owner informs it that, while it would have been nice if Jamie had mentioned the problem to somebody in authority, his duties did not include responsibility for such matters.

Note: This coverage is similar to the coverage provided under CG 00 01–Commercial General Liability Coverage Form in that it provides premises and products liability coverage for garage operations.

2. Garage Operations–Covered Autos

The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury, property damage, and certain pollution costs and expenses this insurance covers caused by an accident and resulting from garage operations involving ownership, maintenance or use of covered autos. It only pays covered pollution costs and expenses if there is covered bodily injury or property damage caused by the same accident.

Example: Greystoke Auto Dealers owns a shuttle that transports customers who have left their cars for service. The shuttle strikes an SUV as it exits the parking lot. The SUV is upended, falls over, and its gas tank ruptures and spews fuel all over the street, sidewalk and the storefront of a neighboring restaurant. The city sues Greystoke for the expense of cleaning up gas residue, and the restaurant sues for the cost of removing gas smells from its awning, tablecloths and furniture. These losses are covered.

Now, let’s change this scenario slightly.

Example: Greystoke Auto Dealers owns a shuttle that transports customers who have left their cars for service. It strikes an SUV as it exits the parking lot. The shuttle driver gets his customers out of the vehicle and then rushes to remove a spare can of fuel from the shuttle as its damaged engine catches fire and places it on the sidewalk. Later, forgetting it was there, he trips over it and falls. The can's loose lid allows five gallons of gas to spill onto the sidewalk and into a sewer drain. The city sues Greystoke for the expense of cleaning up gas residue. This loss is not covered.

The insurance company has the right and duty to defend any insured against suits seeking damages this insurance covers. It alone decides how to handle that obligation. It has the right to decide what to investigate, whether the claim is valid, and whether settling the claim or contesting it is appropriate. Its obligation ends once an action is resolved by a settlement, a court award, or exhaustion of the limit of insurance that applies.

Note: The insurance company's obligation to defend is identical to that in Garage Operations–Other Than Covered Autos. This liability coverage is similar to that provided in CA 00 01–Business Auto Coverage Form with respect to ownership, maintenance or use of covered autos.

3. Who Is An Insured

a. Insureds for covered autos are:

(1) The named insured

(2) Anyone else who uses a covered auto the named insured owns, hires or borrows with the named insured’s permission except:

The owner or anyone else that the named insured hired or borrowed a covered auto from unless the covered auto is a trailer connected to an owned covered auto

Example: If the named insured rents a car from a rental agency, the rental agency is not considered an insured. However, when the named insured rents a utility trailer to move furniture, the trailer owner is considered an insured.

The named insured's employees or members of their households if the employee owns that auto

Example: If the named insured borrows an employee's car to pick a client up at the airport, the employee is not considered an insured.

Anyone using a covered auto while working in the business of selling, servicing or repairing autos, unless it is the named insured's garage operation
The named insured's customers. However:

If the named insured's customer does not have other insurance, the customer is an insured but only up to the compulsory or financial responsibility limits required by law in the state where the covered auto is principally garaged.
If the named insured's customer has other insurance less than the compulsory or financial responsibility limits required by law in the state where the covered auto is principally garaged, the customer is an insured only for the difference between the limits carried and the mandatory limit.

The named insured's partners, if the named insured is a partnership, or members, if the named insured is a limited liability company, for a covered auto he or she, or a member of his or her household, owns.

(3) Anyone liable for the conduct of an insured indicated above, limited to the extent of that liability

(4) An employee of the named insured while using a covered auto that the named insured does not own, hire or borrow in its business or personal affairs

Example: Jim is the body shop manager for Marshall’s New Motors. Lana Marshall asks Jim to pick up her daughter from the airport. Jim takes his own auto and picks her up but strikes a pedestrian on the way to the Marshalls' home. The injured person sues Jim and Marshall Motors. Both qualify as insureds in this loss.

Note: CA 99 33—Employees As Insureds was the only way to provide this coverage in the past.

b. Insureds for garage operations other than covered autos are:

(1) The named insured

(2) The named insured's partners, if the named insured is a partnership, members, if the named insured is a limited liability company, employees, directors or shareholders while acting within the scope of their duties

Note: This is a very restrictive definition when compared to Who Is An Insured in the Commercial General Liability Coverage Form. Neither the named insured's spouse nor partners are insureds.

4. Coverage Extensions

a. Supplementary Payments

The insurance company pays the following on behalf of the insured:

(1) All expenses it incurs. This clarifies that the insurance company's expenses do not reduce the limit of insurance.

(2) If a bail bond related to a covered accident is required, up to $2,000 is available to pay its cost. The bond could be for a traffic law violation if related to the covered accident. The insurance company does not have to furnish the bond.

(3) The cost of bonds needed to release attachments in a suit filed against the insured that it defends, but only the amount of such bonds within the limit of insurance.

(4) Reasonable expenses if it asks the insured to participate in any investigation or defense. This includes actual loss of earnings up to $250 a day because of time taken off from work.

(5) All costs taxed against the insured in a suit filed against it that the insurance company defends. The exception is that attorney’s fee and attorney’s expenses taxed against the insured are not included (03 10 change).

(6) Interest that accrues following a judgment is covered. If the insurance company offers to pay, deposits payment with the court, or pays the judgment, any additional interest that accrues is not covered.

Note: None of these payments reduce the limit of insurance. This means that it is available to pay for the actual injuries or damages.

b. Out-Of-State Coverage Extensions

This section provides two important coverage extensions when an insured is away from the state where the auto is licensed or garaged. They essentially make the insurance provided comply with any state financial responsibility law, no-fault or other compulsory coverage. The two extensions are:

(1) The limit of insurance provided is automatically increased as needed to meet the limits required by a compulsory or financial responsibility law in the jurisdiction where the covered auto is being operated. An important note to this extension is that it does not apply to any law governing motor carriers, passengers or property.

Example: Percy’s garage policy liability limit is $50,000. It complies with the financial responsibility laws of the state where the vehicle is licensed and garaged. However, that limit is inadequate when Percy drives across the state line into the next state that has a minimum limit requirement of $75,000. This extension automatically increases the limit to $75,000 while Percy drives in that state.

(2) The Garage Coverage Form provides the minimum amounts and types of other coverages required of out-of-state autos by the state where the covered auto is operated. One such coverage is no-fault.

Example: Percy’s state does not require no-fault coverage, but a neighboring state where Percy often travels does. This extension provides the coverage that state requires when Percy drives there.

Note: A statement here clarifies that the insurance company does not pay anyone more than once for the same elements of loss because of these extensions. In other words, it does not duplicate any coverage or allow damages to be collected more than once.

B. Exclusions

It is important to read these exclusions to determine what is excluded and to also carefully consider any exceptions to them.

1. Expected Or Intended Injury

Any bodily injury or property damage the insured expects or intends to cause is excluded. However, for garage operations other than covered autos, this exclusion does not apply to bodily injuries that come from reasonable force used to protect persons or property.

Note: It is important to note that this exclusion applies to the entire policy, but the exception does not apply to covered auto coverage.

Example: George, an employee of First Auto Dealership, witnesses a purse snatching. He pursues the thief, catches him, and holds him until the police arrive. If the thief sues George, the First Auto Dealership Garage Coverage Form responds to the loss. However, there is no coverage if George drove a covered vehicle at the time and used it to pin the thief against a building.

Note: This exclusion is intended to protect insurance companies from responding to damages or injuries the insured causes intentionally. It is in the public interest to prevent the insurance coverage from being used for gain, to injure competitors, as an instrument of revenge, or to cause any other deliberate harm. There is no ISO endorsement available to buy coverage for intentional acts or to delete this exclusion at the present time.

2. Contractual

Damages for bodily injury or property damage that result from liability the insured assumed in a contract or agreement are excluded. However, there are two exceptions. Coverage applies if either the contract or agreement is considered an insured contract or if the insured would have been liable without a contract or agreement. There is no ISO endorsement available to buy back or delete this exclusion at the present time.

3. Workers Compensation

Coverage does not apply to any requirement or obligation the insured or its insurance company must assume due to any workers compensation, disability benefits, unemployment compensation, or similar law.

Note: This exclusion and the one that follows are intended to prevent double indemnification for injury that should be covered under workers compensation or employers liability policies.

Insurers and brokers having to provide coverage on a variety of difficult, unusual or specialty workers compensation situations should refer to the Workers Compensation section in The Insurance Marketplace, a publication of The Rough Notes Company, Inc.

4. Employee Indemnification And Employers Liability

Bodily injury to an employee that results from the actual employment or performance of duties that relate to the insured’s business is excluded.

In addition, bodily injury to a person who is not hired, or who is fired or is subject to negative employment-related practices, is also excluded.

Example: Maury worked as a mechanic for Lavid Motors. He specialized in brakes and sues Lavid when he develops asbestosis because asbestos was in the brake linings he worked on. Lavid’s insurance company denies coverage.

Bodily injury to the spouse, child, parent, brother or sister of the employee or the person described in the first section of this exclusion that is consequential to that person’s or employee’s bodily injury is also excluded.

Example: Maury’s wife helps to care for him. She injures her back when he falls, and she attempts to lift him up. She sues Lavid Motors because her injury is a consequence of Maury’s injury. Lavid’s insurance company denies coverage.

This entire exclusion applies regardless of when the employment- practices described above took place, whether before, during, or following employment (03 10 addition). It also applies whether the insured is liable as an employer or in any other capacity, or whether the insured is obligated to share damages with or repay someone else who must pay damages because of the injury.

Note: This clarification is important because of the widespread use of contractors, subcontractors, independent contractors or leased employees, and much of the uncertainty with respect to who is responsible.

Note: This exclusion has two exceptions. Coverage does apply to bodily injury to domestic employees who are not entitled to workers compensation benefits and also to liability the insured assumes in an insured contract. Domestic employees are persons who perform household or domestic work primarily for a residence premises.

5. Fellow Employee

It is important to remember that employees are considered insureds. As a result, exclusions 3 and 4 could be circumvented if the injured employee could sue the fellow employee who actually caused the accident. This exclusion prevents that workaround. Bodily injury to a fellow employee of the insured that occurs as a result of or in the course of that employee’s employment is excluded. In addition, bodily injury to the spouse, child, parent, brother or sister of the fellow employee consequential to the fellow employee’s bodily injury is also excluded (03 10 addition).

There are two ways to modify this exclusion. CA 20 55–Fellow Employee Coverage can be used to eliminate this exclusion entirely. CA 20 56—Fellow Employee Exclusions For Designated Employees/Positions can be used to eliminate this exclusion for injuries caused by certain employees or positions.

6. Care, Custody Or Control

Property damage to or covered pollution cost or expense to property the insured owns, rents, or occupies, property loaned to the insured, property it holds for sale or transports, or that is in its care, custody or control is excluded unless such liability was assumed in a sidetrack agreement.

The Garage Coverage Form protects the insured for its negligence and tort liability to others, not to damages or injury to the insured or its property. As such, it reinforces the need for the insured to maintain its premises and properties in good condition and to use reasonable care to prevent damage or injury, including damage to property in its care, custody or control.

Note: A sidetrack agreement involves the owners of a premises and a railroad with respect to a railroad sidetrack (a transfer or access track) on the insured's premises. The railroad allows the owner of the premises to use the sidetrack as long as it guarantees the railroad access to the sidetrack and agrees to certain conditions of property maintenance. It may also contain specified conditions of hold-harmless between the owner and the railroad.

Note: Section III–Garagekeepers Coverage insures customers’ vehicles in the insured’s care, custody and control. Coverage for property damage to other types of property is not available under this coverage form but property of others can be scheduled on a commercial property or an inland marine coverage form.

7. Leased Autos

Covered autos leased or rented to others are excluded except for covered autos rented to customers while their autos are left for service or repair.

8. Pollution Exclusion Applicable To Garage Operations–Other Than Covered Autos

a. There is no coverage for bodily injury or property damage arising out of any actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants:

(1) At or from any premise or site ever owned or occupied by, or rented or loaned to, any insured

(2) At or from any premises, site or location that is or ever was used by or for any insured or others to handle, store, dispose of, process or treat waste

(3) At or from any location that the insured or contractors or subcontractors working directly or indirectly on the insured's behalf perform operations:

(a) To test for, monitor, clean up, remove, contain, treat, detoxify, neutralize or respond in any way to the effects of pollutants

(b) If the contractor or subcontractor brought the pollutants on or to the premises, site or location in connection with such operations

(4) That are or ever were transported, handled, stored, treated, disposed of or processed as waste by or for any insured or any organization the named insured may be legally responsible for

Paragraphs a. (1) and a. (3) (b) do not apply to bodily injury or property damage that arises out of heat, smoke or fumes from a hostile fire.

Paragraph a. (1) does not apply to bodily injury sustained in a building and caused by smoke, fumes, vapor or soot produced by or originating from equipment that heats, cools or dehumidifies the building, or from equipment used to provide hot water for the building's occupants.

Paragraph a. (3) (b) does not apply to bodily injury or property damage sustained inside a building caused by release of gases, fumes or vapors from material brought inside in conjunction with work done by the named insured or by contractors or subcontractors working on its behalf.

b. There is no coverage for any loss, cost or expense arising out of:

(1) Any request, demand, order or legal requirement to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or responding to or assessing the effects of pollutants in any way

(2) Any claim or suit by or on behalf of governmental authorities for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing or responding to or assessing the effects of pollutants in any way

9. Pollution Exclusion Applicable To Garage Operations–Covered Autos

There is no coverage for bodily injury or property damage arising out of any actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants:

a. Contained in any property:

(1) Being transported or handled in any way in, on or off a covered auto

(2) In transit otherwise by the insured or on its behalf

(3) Being stored, disposed of, treated or processed in or on a covered auto

b. Before the pollutant or its container is moved from the place where the insured accepts it for movement to the covered auto

c. After the pollutant or its container is moved from the covered auto to its final delivery destination for disposal or to be abandoned.

Paragraph a. does not apply to fuels, liquids, lubricants, exhaust gases and similar pollutants needed for normal operations of the covered auto that escape in any way from the compartment intended to contain them.

Paragraphs b. and c. do not apply to accidents that take place away from an insured's premises involving pollutants not in or on a covered auto if the pollutant or its container is upset, overturned or damaged resulting from maintenance or use of a covered auto and the release is directly caused by the upset, overturn or damage.

Example: Paul, a salesman with Miracle Motors, is with Mary as she test-drives a car from his dealership. She loses control and crashes into the outside oil tank at Jimmy’s Convenience store. The tank ruptures and releases all of its contents. Because the tank is not on the dealership’s premises and the release is caused by damage to the tank, the pollution release is covered under Miracle's Garage Coverage Form.

Note: CA 99 55–Pollution Liability–Broadened Coverage for Covered Autos–Garage Coverage Form provides a buyback for pollution coverage. It changes the pollution exclusion by excluding only liability the insured assumes under a contract or agreement.

10. Racing

There is no coverage for any auto while being used in, practicing or being prepared for any professional or organized racing, demolition contest or stunts.

Note: Simply stated, vehicles are troublesome, even under normal operating conditions. They're heavy, difficult to control, and can cause an incredible amount of damage. For these reasons, insurance companies are not interested in providing coverage in cases where vehicle owners deliberately operate their property recklessly or dangerously.

11. Watercraft Or Aircraft

Watercraft or aircraft are excluded except watercraft on shore at the named insured's garage locations where it conducts operations.

12. Defective Products

Coverage does not apply to property damage to any of the named insured's products if a defect in a product or one of its parts was transferred to another.

Note: CA 25 01–Broad Form Products Coverage eliminates this exclusion and covers loss involving an insured's defective products.

13. Work You Performed

Property damage to the named insured’s work or any part of it is excluded if it results from any part of the work itself or from parts, materials or equipment used in connection with the work.

Example: Paul’s Fine Cars repairs the engine in a customer’s vehicle. The work is defective and causes a vehicle fire. There is no coverage for the engine damage, but coverage may apply for the rest of the vehicle.

14. Loss Of Use

There is no coverage for loss of use of other property not physically damaged caused by any defect, inadequacy or dangerous condition in the named insured’s product or work, or caused by any delay or failure of the named insured or anyone acting on its behalf to perform the terms of a contract or agreement.

Note: This exclusion has an exception. The Garage Coverage Form responds to loss of use if the loss of use of other property is the result of sudden or accidental damage to either the named insured’s product or work after being used as intended.

15. Products Recall

There is no coverage for damages claimed for any loss, cost or expense the named insured or others incurs for loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of the named insured’s product. There is also no coverage if the claims for damages are due to work the named insured performed, or other property of which the named insured's work or product is a part when withdrawn, recalled or removed because of a known or suspected defect, deficiency, inadequacy or dangerous condition.

Note: Coverage does not apply, regardless of the party that initiates the withdrawal, recall or removal. The expense and cost of the recall, repair or removal is excluded if there is reason or cause to suspect that a product, work or property is defective or could cause injury or damage.

16. War

This exclusion unequivocally bars coverage for either bodily injury or property damage related to war and similar military events. It is not affected by circumstances such as a formal declaration of war, that the war is a civil uprising, or whether it involves government or civilian participants.

Note: The bottom line is that there is no coverage for loss related either directly or indirectly to war or warlike activity.

17. Distribution Of Material In Violation Of Statutes Exclusion Applicable To Garage Operations–Other Than Covered "Autos"

Insurance coverage does not apply to bodily injury or property damage that arises directly or indirectly out of any act or omission that violates or allegedly violates the Telephone Consumer Protection Act (TCPA), including its amendments or additions, the CAN-SPAM Act of 2003, including its amendments or additions, or any other statute, ordinance or regulation prohibiting or limiting the sending, transmitting, communicating or distributing of material or information.

Example: Midtown Car Sales is insured under the Garage Coverage Form. It sends notice to its insurance company and requests that it handle a recently filed claim notice of a class-action lawsuit on behalf of thousands of citizens in the area over receiving e-mail advertisements of Midtown's monthly auto deals. Midtown sent the e-mails based on an e-mail list purchased from a third party. The insurance company rejects the claim request because Midtown's action involved spamming.

C. Limit Of Insurance

1. Aggregate Limit Of Insurance–Garage Operations–Other Than Covered Autos

For these operations, without regard to the number of insureds, claims made, or suits brought, the most paid for the total of all damages resulting from all bodily injury and property damage in any one accident is the aggregate limit on the declarations. These damages do not include ownership, maintenance or use of covered autos because that coverage has its own limit. It does include the following coverages, if provided:

Personal injury liability coverage
Personal and advertising injury liability coverage
Host liquor liability coverage
Damage to rented premises liability coverage
Incidental medical malpractice liability coverage
Non-owned watercraft coverage

Broad form products coverage

Note: All bodily injury and property damage that is the result of continuous or repeated exposure to essentially the same conditions is considered the result of one accident.

The Aggregate Limit applies separately to each annual 12-month period beginning on the inception date. For any remaining period of less than 12 months, the limit also applies separately to that period unless coverage was extended for that period. In that case, the extended period is part of the preceding policy period for purposes of applying the limit.

Example: Taylor's Custom Carriages Garage Coverage Form runs from 12/01/10 to 12/01/11. Taylor contacts his insurance company and asks it to extend the policy period to 03/01/12 and to then renew for the period 03/01/12 to 03/01/13 in order to match the dates of Taylor's' other policies. Taylor is informed that the same aggregate limit applies to the entire extended 15-month policy term.

2. Limit Of Insurance–Garage Operations–Covered Autos

For these operations, without regard to the number of covered autos, insureds, premium paid, claims made, or vehicles involved in the accident, the most paid for the total of all damages resulting from all bodily injury and property damage in any one accident is the each accident limit on the declarations. Damages and covered pollution costs or expenses are that are payable under this coverage are not payable under Garage Operations–Other Than Covered Autos.

Note: All bodily injury, property damage, and covered pollution cost or expense that is the result of continuous or repeated exposure to essentially the same conditions is considered the result of one accident.

Note: No party can receive duplicate payments for essentially the same loss under this coverage form and any medical payments, uninsured motorists or underinsured motorists coverage that is part of this coverage form.

Example: The two named insureds on the Garage Coverage Form are Smith, Inc. and John Smith, Smith Inc.'s owner. Smith, Inc. owns several private passenger vehicles that John uses for both business and pleasure. John causes a serious accident while using one of them on a personal errand. Because of the severity of her injuries, the injured party sues John individually for $500,000 and Smith, Inc. as the vehicle owner for $500,000. The Garage Coverage Form's limit is $500,000 Each Accident For Garage Operations–Covered Autos. The claimant is awarded $1,000,000, or $500,000 from each party named in the lawsuit but the Garage Coverage Form pays only its $500,000 limit.

D. Deductible

$100 is deducted from the damages in an accident resulting from property damage to an auto resulting from the named insured's work done on that auto.

SECTION III–GARAGEKEEPERS COVERAGE

A. Coverage

1. The insurance company pays amounts the insured is legally obligated to pay as damages for loss or damage to either a customer's auto or its equipment left in the insured's care while attending, servicing, repairing, parking or storing it in the named insured's garage operations. One or more of the following coverages applies if a limit for it is on the declarations:

a. Comprehensive Coverage

Coverage applies to any cause of damage to a customer's auto except collision with another object and overturn.

b. Specified Causes Of Loss Coverage

This coverage applies only to loss or damage caused by or resulting from fire, lightning, explosion, theft, mischief or vandalism.

c. Collision Coverage

This coverage is very specific. The only covered loss or damage is that caused by the customer's auto's collision with another object or its overturn.

Note: Another object could be another vehicle as well as an animal, bird, person, tree, building or sign, to name a few.

2. The company has both the right and the duty to defend any insured against suits seeking these damages if coverage applies. It can investigate and settle claims and suits in the appropriate manner but its duty to defend ends when the limit of insurance for the coverage that applies is exhausted by payment of judgments or settlements.

3. Who Is An Insured

The insured for loss or damage to customer's autos and their equipment is the named insured, its partners if the business is a partnership, its members if the business is a limited liability company, and employees, directors or shareholders while acting within the scope of their duties.

4. Coverage Extensions

The insurance company pays the following supplementary payments for the insured. They apply to any claim or suit it defends and do not reduce the limit of insurance.

a. All expenses it incurs.

b. The cost of bonds needed to release attachments in a suit filed against the insured that it defends, but only the amount of such bonds within the limit of insurance

c. Reasonable expenses if it asks the insured to participate in any investigation or defense. This includes actual loss of earnings up to $250 a day because of time taken off from work.

d. All costs taxed against the insured in a suit filed against it that it defends, except for attorney’s fees and expenses taxed against the insured (03 10 addition).

e. Interest on the full amount of any judgment that accrues after it is entered in a suit against the insured that it defends. The duty to pay interest ends after the company offers the part of a judgment that falls within its limit of insurance.

B. Exclusions

1. The insurance provided by this coverage form does not apply to the following:

a. Contractual Obligations

Liability that results from any contract or agreement where the insured accepts responsibility for a loss is excluded, unless the insured would be liable for the loss without a contract or agreement.

b. Theft

Coverage does not apply to loss due to theft or conversion caused in any way by the named insured, its employees, or shareholders.

Note: This coverage is available under crime or employee dishonesty coverage forms.

c. Defective Parts

Loss caused by or resulting from use of defective parts or materials is excluded.

d. Faulty Work

There is no coverage for loss caused by or resulting from the named insured's faulty work performed.

2. The following types of property are excluded:

a. Sound equipment not permanently installed in the vehicle. This includes tape decks, compact disc players and new types of sound reproducing equipment.

b. Media used to produce sound in sound reproducing devices. This includes compact discs, cassettes and new types of media.

c. Equipment not permanently installed and designed to receive sound. This includes citizens’ band radios, two-way mobile radios, telephones or scanning monitor receivers, including their antennas, and any accessories unless permanently installed.

Note: CA 99 59–Garagekeepers Coverage–Customers' Sound Receiving Equipment covers this type of equipment and essentially deletes exclusion c.

d. Equipment designed or used to detect, locate or jam radar or any other speed detection devices.

Note: There is no reference to increasingly common and sophisticated computing, visual and/or navigational devices.

3. Coverage does not apply to loss or damage caused by or resulting from the following, regardless of any other cause or event that contributes concurrently or in any sequence to the loss.

a. War. This includes civil war and undeclared war.

b. Warlike actions by military forces. This includes actions by any government, sovereign or other authority that uses military personnel or other agents to hinder or defend against actual or expected attacks

c. Action taken by governmental authority to hinder or defend against insurrection, rebellion, revolution or usurped power

C. Limits Of Insurance And Deductibles

1. For these operations, without regard to the number of customer's autos, insureds, premium paid, claims made, or suits brought, the most paid for each loss at each location is the limit on the declarations.

Note: An important point for the named insured to consider in selecting the limit is the total number of vehicles in its care at any one time and their associated values.

Example: A fire damages four vehicles at Handy’s Used Car Lot, for total damages of $65,000. Since Handy’s Garagekeepers limit is $50,000, only $50,000 is paid.

The deductibles that apply to a loss must be subtracted from the amount claimed prior to applying the limit cap (03 10 clarification change).

Example: Hail damaged 25 customers’ vehicles at Small Town Dealership. Small Town had a $100,000 limit with a $500 per-vehicle, $2,500 per-occurrence comprehensive deductible. The loss amounted to $110,000. This amount was reduced by the $2,500 per-occurrence deductible to $107,500 but the insurance company paid only the $100,000 limit.

2. The deductible for Garagekeepers Coverage Comprehensive or Specified Causes Of Loss Coverages on the declarations is the most deducted for all loss in any one occurrence.

3. If the insurance company pays all or part of the deductible in order to settle a claim or suit, the named insured must reimburse the company for any such amounts it paid.

SECTION IV–PHYSICAL DAMAGE COVERAGE

A. Coverage

The insurance company pays for loss to a covered auto and its equipment based on the coverages on the declarations and the symbols selected. When selected, the following coverage is provided:

1. The insurance company pays for loss or damage to covered autos or their equipment if a symbol is indicated.

a. Comprehensive Coverage

This is loss or damage from any cause except the covered auto colliding with another object or overturning.

b. Specified Causes Of Loss

This is loss or damage caused by only fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, or sinking, burning, collision or derailment of any conveyance transporting the covered auto.

Note: Although these are the most common losses, they are very specific, and many losses are not covered.

c. Collision Coverage

This is loss or damage caused by the covered auto colliding with another object or overturning.

Note: "Another object" could be an animal, bird, person, tree, building, sign, etc., in addition to another vehicle.

2. Glass Breakage–Hitting A Bird Or Animal–Falling Objects Or Missiles

The insurance company pays for loss or damage caused by glass breakage, striking an animal or bird, and by falling objects or missiles if comprehensive coverage applies to the damaged auto. However, the named insured can choose to cover a glass breakage loss as part of collision when the breakage is due to a collision and avoid paying two deductibles.

Note: This clarifies coverage. The three types of losses indicated could be called collisions because an object struck the vehicle. This is important because the named insured might have a smaller deductible on its comprehensive coverage or may only carry comprehensive coverage.

3. Coverage Extension

Loss Of Use Expenses

The expenses an insured must pay under a written rental contract or agreement for loss of use of a rental car are covered but only if it purchases Hired Auto Physical Damage. Coverage is limited to $20 per day and $600 maximum. Payment is made if the loss of use expenses is caused by:

Other than collision but only if symbol 28 is entered for Comprehensive Coverage.
Specified Causes Of Loss but only if symbol 28 is entered for Specified Causes Of Loss Coverage
Collision, but only if symbol 28 is entered for Collision coverage.

Note: CA 99 90–Optional Limits–Loss Of Use Expenses can be used to purchase higher limits.

B. Exclusions

Editor’s note: Some exclusions are given titles for analysis purposes. These titles are not a part of the Garage Coverage Form.

1. Coverage does not apply to loss or damage caused by or resulting from the following, regardless of any other cause or event that contributes concurrently or in any sequence to the loss.

a. Nuclear Hazard

This is explosion of any weapon using atomic fission or fusion, or nuclear reaction, radiation or radioactive contamination, regardless of how caused.

b. War Or Military Action

This includes declared or undeclared war, civil war, warlike action by a military force, including acts to defend or hinder an expected or actual attack by any government or authority employing military personnel or agents, as well as insurrection, rebellion, revolution, usurped power or any action to hinder or defend against these.

Note: Damage or loss involving nuclear or war-like activities is excluded even if other loss factors contribute to an incident. In other words, these losses are excluded regardless of how caused or whether or not they combine with any other cause of loss.

2. The insurance company does not pay for loss or damage to the following:

a. Leased Or Rented Autos

Coverage does not apply to any covered auto leased or rented to others.

Note: This exclusion has an exception for autos rented to customers who leave their autos with the named insured for service or repair.

b. Racing

There is no coverage for any covered auto while it is being used in or practicing or being prepared for any professional or organized racing, demolition contest or stunting activity.

c. Tapes, Records, Discs

Tapes, records, discs and similar property or devices designed for use with audio, visual, or electronic equipment are excluded. This exclusion is extremely broad because of changes in media. Tapes and CD’s are excluded as well as DVD’s and equipment that can be attached to any media system within the auto.

Note: In this exclusion, ISO uses the term “data electronic” that is neither defined nor in common usage. The term is used to describe devices that are excluded and also to describe equipment to which any of these excluded items could be designed for. Although it appears to be an all-inclusive term, its lack of clear meaning could make this exclusion ambiguous.

d. Speed Detection Devices

There is no coverage for radar and laser jamming, detecting, eluding or disrupting equipment designed or used to detect speed.

e. Electronic Equipment (03 10 change)

Coverage does not apply to any type of electronic equipment used to receive, reproduce, or transmit audiovisual or data.

Note: The exception for equipment used solely to reproduce sound is eliminated (03/10 change).

f. Other Equipment

Any accessory used with electronic equipment described in paragraph e. is also not covered.

3. This item provides exceptions to exclusion 2.e and 2.f above (03 10 change).

Exclusions 2.e and 2.f. do not apply to property designed to operate only from the auto’s electrical system and that at the time of loss meet any of the following criteria:

a. Permanently installed in or on the covered auto

b. Not permanently installed but removable only from a housing unit that is permanently installed in or on the covered auto

c. Any item that is considered integral to items described in a. or b. above

d. Other electrical equipment normal to the operation of the covered auto or that monitors the operating system

4. False Pretense

There is no coverage for loss to a covered auto caused by or resulting from another party causing the named insured to voluntarily part with it under false pretenses, or because of a trick or scheme, or because the named insured acquired an auto from a seller who did not have legal title to it.

Example: Suburban Motors turns in a loss on a pre-owned vehicle it purchased from an individual two weeks earlier. When investigating the loss, the adjuster discovers that the seller did not have legal title to it because it was actually stolen, and the seller used falsified papers to transact the sale. The insurance company denies the claim.

Note: CA 25 03–False Pretense Coverage covers dealers and garage operations that receive used vehicles for trade-ins. It covers the insured up to the specified limit for vehicles it acquires from customers who engage in false pretense.

5. Specific Exclusions

a. Coverage does not apply to the named insured's expected profit, loss of market or resale value.

b. The insurance company does not pay for loss to any covered auto stored or displayed at any location not on the declarations 45 or more days after the named insured begins using that location.

c. Collision coverage does not apply to any covered auto driven or transported more than 50 miles between the purchase or distribution point and the destination.

Note: CA 25 02—Dealers Driveaway Collision Coverage is used with dealers and garage operations with driveaway exposures that may need additional collision coverage by eliminating the 50 mile limitation. The insured must provide additional information with the periodically required reports if this endorsement is used.

d. Specified Causes Of Loss coverage does not apply to loss or damage to any covered auto caused by or resulting from collision or upset of the vehicle transporting it.

6. Diminution Of Value

Loss of a covered auto's value because it was involved in an accident is not covered. Diminution Of Value is defined in Section VI–Definitions.

Example: Harvey has a collision loss and the vehicle is repaired. The repair shop tells him that the auto is now worth less than before the loss just because people are unwilling to pay as much for an auto that has been in an accident. Harvey presents a claim for the perceived loss of value that the insurance company denies.

7. Other Exclusions

Coverage does not apply to loss or damage caused by and confined to wear and tear, freezing, mechanical or electrical breakdown, or from blowouts, punctures or other road damage to tires. This exclusion does not apply if the loss is the result of the total theft of the vehicle.

Note: The exception previously was for any cause of loss that was otherwise covered. It is now reworded to provide similar coverage because the loss or damage must be “confined” to only the excluded items.

Note: There are no current ISO endorsements available to buy back or delete this exclusion. The insured interested in insuring some of these exposures should check into the special warranty, labor and replacement programs available through many dealerships.

C. Limits Of Insurance

1. The most paid for loss or damage to any one covered auto is the lesser of:

a. The actual cash value of the stolen or damaged property

Note: This value is based on what the property was worth at the time of the loss, not at the time of adjustment or when it was purchased.

b. The cost to repair or replace the stolen or damaged property with property of like kind and quality

2. A $1,000 sub-limit applies to certain types of covered electronic equipment. It must be permanently installed or removable but in a permanently installed housing in a part of the vehicle the auto manufacturer does not use for such equipment. Any equipment that is part of such equipment is also subject to the sub-limit (03 10 addition).

3. In case of a total loss, adjustments are made for the auto's depreciation and physical condition to establish the actual cash value.

4. If repairing or replacing the auto increases its value, the insurance company does not pay for that increase.

Note: CA 99 28–Stated Amount Insurance appears to be a way around this limitation. However, for vehicles on the endorsement schedule, the limit for physical damage coverage is changed to the least of the actual cash value, the cost to repair or replace, or the limit specified. This means this limitation would still apply. In fact, this endorsement should be used cautiously because it could actually decrease the settlement amount.

5. Additional Provisions

a. The most paid for all loss or damage at any one location is the limit for that location on the declarations, regardless of the number of covered autos damaged or involved in the loss. Similarly, the most paid for all loss in transit is the limit on the declarations for loss in transit, regardless of the number of covered autos damaged or involved in the loss.

b. Quarterly Or Monthly Reporting Premium Basis

If the actual value of the covered autos at the loss location exceeds the value given on the latest report, the insurance company pays only a percentage of the loss. It arrives at this percentage by dividing the total reported value for the involved location by the actual value on the date of the last report. If the first report was not submitted on time, the most paid is not more than 75% of the limit of insurance on the declarations for the involved location.

c. Non-Reporting Premium Basis

If the actual value of the covered autos at the loss location exceeds the value on the declarations, the insurance company pays only a percentage of the loss. It arrives at this percentage by dividing the limit by the total values at risk at the time of loss.

D. Deductible

The amount the insurance company pays to repair, return, or replace damaged or stolen property is reduced by the deductible amount on the declarations. Comprehensive or Specified Causes Of Loss Coverages can have a deductible for only theft and vandalism or for all perils. The per-loss deductible is capped at the maximum deductible indicated for that location on the declarations.

Note: The collision deductible is a per loss deductible and there is no maximum.

SECTION V–GARAGE CONDITIONS

The conditions in this section are in addition to the conditions in IL 00 17–Common Policy Conditions.

A. Loss Conditions

1. Appraisal For Physical Damage Loss

If the insurance company and the named insured fail to agree to the amount of a loss, either may demand an appraisal. When this occurs, each party selects a competent appraiser, both of whom then select a competent and impartial umpire. Each appraiser separately states the actual cash value and amount of loss. If the two appraisers do not agree, they submit their differences to the umpire. When any two of the three agree, that decision is binding on all parties. The insurance company and the named insured each pay the cost of the appraisers and share the expense of the umpire and costs of the appraisal equally.

Note: Even if the insurance company participates in the appraisal process, it still retains the right to deny the claim.

2. Duties In The Event Of Accident, Claim, Suit Or Loss

The insurance company has no duty to provide any coverage under this coverage form unless the named insured fully complies fully with the following duties:

a. In case of an accident, claim, suit or loss, the named insured must provide either the insurance company or its authorized representative with prompt notice of how, when and where the accident or loss occurred, the insured’s name and address, and the names and addresses of any injured persons or of any witnesses, if known.

b. The named insured and the involved insured must not commit the insurance company to any payment, obligation or expense. However, the insured can make any commitments it wants at its own expense. The named insured and the insured involved must cooperate with the insurance company during investigating or settling the claim or defending the suit. They must also provide copies of all documents the company requests as well as provide it with all necessary authorizations so it can obtain medical records or other pertinent information and submit to examination by a physician the company chooses as long as it is reasonable and at the company's expense.

c. The named insured has additional duties in case of a physical damage loss to a covered auto or its equipment. It must notify the police promptly if the loss is due to theft. In other loss situations and within reason, the named insured must protect the covered auto from further damage and record the expenses incurred to do so because they can be considered when the claim is settled. The insurance company must be able to inspect the damaged auto and obtain information about the loss before the auto is repaired or disposed of. If the company requests, the named insured must agree to be examined under oath and sign any statement of answers.

Failure to cooperate can have serious consequences. Although it does not involve commercial auto, this case illustrates what can happen to a party who does not comply with such provisions.

3. Legal Action Against Us

No one may bring legal action against the insurance company until all coverage form terms have been complied with. In addition, under liability coverage, the insurance company must agree that the insured has an obligation to pay a third party or a court must have determined that there is such an obligation The insurance company cannot be brought into any action to determine the insured’s liability.

4. Loss Payment–Physical Damage Coverages

The insurance company determines the method to use to settle a physical damage loss. It can:

a. Pay to repair or replace the damaged or stolen property

b. Return the stolen property but bear the expense of returning it. It also pays any damages the auto incurred due to the theft.

c. Pay the appraised or agreed value of the damaged or stolen property and then take any or all of it

Note: Any payment made includes any required sales tax.

5. Transfer Of Rights Of Recovery Against Others To Us

If the insurance company made payments to a party under this coverage form, any rights that party may have to recover from another transfer to the insurer. The party that was paid must do everything necessary to secure the company's rights to recover and do nothing to impair those rights.

B. General Conditions

1. Bankruptcy

Bankruptcy of the insured or its estate does not relieve the insurance company of its obligations under this coverage form.

2. Concealment, Misrepresentation Or Fraud

Coverage is void in any case of fraud by the named insured at any time relating to this coverage form. It is also void if the named insured or any insured at any time intentionally conceals or misrepresents material facts relating to this coverage form, the covered auto, the named insured’s interest in the covered auto, or any claim made under this coverage form.

Example: Nigh-Eve Mutual issues a garage coverage form to Acme Autos. Acme turns in a claim involving losses to more than a dozen new cars it alleges were vandalized on its lot. The loss investigation reveals that Acme actually deals in used, older vehicles and targets persons with poor credit instead of being the dealer in high-value new cars as stated on the application. The loss is denied.

3. Liberalization

Any broadened or additional coverage the insurance company provides without an additional premium charge automatically applies to this coverage form. It is effective on the date that the coverage is effective in the named insured’s state.

4. No Benefit To Bailee–Physical Damage Coverages

If a party, such as a bailee, holds or transports property for a fee and requires an assignment of coverage, the insurance company does not recognize that assignment, regardless of any other provision in this coverage form.

5. Other Insurance

a. This insurance is primary if the named insured owns the covered auto. Otherwise, it is excess over any other insurance that can be collected. Trailer coverage is similar but is based on the vehicle it is attached to. If the trailer is attached to the named insured's covered auto, coverage for the trailer is primary. However, coverage is excess when the trailer is attached to a motor vehicle the named insured does not own.

b. Under hired auto physical damage coverage, a covered auto the named insured leases, hires, rents or borrows is considered an owned covered auto. The one exception is when such autos come with a driver.

Note: CA 20 54–Employee Hired Autos covers situations when an employee hires an auto in his or her own name as an individual intending to perform business-related duties and activities for the named insured.

c. This coverage is always primary when liability is assumed in an insured contract.

Note: This supersedes the provisions of paragraph 5.a above.

d. The insurance company pays only its share when any other insurance covers the loss on the same basis, regardless of whether that coverage is on a primary or excess basis. Its share is the proportion that this limit of insurance bears to the total of the limits of all coverage forms and policies that apply on the same basis.

Note: Ratios are determined based on each company’s limits as a percentage of all limits available. Losses are proportioned among the insurers accordingly.

6. Premium Audit

a. The initial premium paid is an estimate based on the exposures the named insured stated at inception. The insurance company calculates the final premium based on the insured's actual exposures. Once that is done, the estimated premium is subtracted, and the first named insured is either billed for the additional amount owed or receives a refund if it overpaid. The billing statement indicates the date additional premium is due.

b. When coverage is issued for longer than a one-year term, the premium is calculated annually based on the insurance company's rates in effect at the beginning of each annual period.

7. Policy Period, Coverage Territory

Only bodily injury, property damage and losses that occur during the policy period are covered. Only covered pollution cost or expense that arises from accidents that occur during the policy period is covered. The occurrence or accident must take place within the coverage territory. The coverage territory is the United States of America, its territories and possessions, Puerto Rico and Canada.

Worldwide coverage is provided if the covered private passenger auto is leased, rented or hired for a period of less than 30 days and the responsibility to pay is determined in the territories listed in the first paragraph of this condition.

The coverage territory is extended to anywhere in the world if the bodily injury or property damage is caused by one of the insured’s products sold for use in one of the coverage territories indicated above. The original suit for damages resulting from the bodily injury or property damage must first be brought in a described coverage territory.

Note: CA 01 21–Limited Mexico Coverage is available to minimally broaden the coverage territory. However, it should be read carefully and evaluated completely before being used because of its very limited nature.

8. Two or More Coverage Forms Or Policies Issued By Us

Except for coverage forms or policies issued specifically as excess, if this coverage form and any other coverage form or policy issued to the insured by the insurance company or any of its affiliates apply to the same accident, the most paid for the total limit of insurance under all the coverage forms or policies is not more than the highest applicable limit of insurance under any one coverage form or policy.

SECTION VI–DEFINITIONS

A. Accident includes continuous or repeated exposure to the same conditions that result in bodily injury or property damage.

B. Auto is a land motor vehicle, trailer or semitrailer.

C. Bodily injury is not only bodily injury sustained by a person but also sickness or disease sustained by a person, including resulting death from any of these.

D. Covered pollution cost or expense is any cost or expense arising out of requests, demands, orders, statutory or regulatory requirements, claims or suits by or on behalf of a governmental authority demanding that the insured or others test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of pollutants. This includes suits or claims brought by the governmental authority or others for any of these.

It does not include cost or expense that arises out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants:

a. Being transported, towed by, handled or handled for movement into, onto or from a covered auto, are otherwise in the course of transit by or on behalf of the insured, or are being stored, disposed of, treated or processed in or on a covered auto. This includes any pollutants contained in any property during any of the previously indicated conditions.

This paragraph has an exception. Coverage may apply if fuels, lubricants, fluids, exhaust gases or other similar pollutants needed for or as a result of the normal electrical, hydraulic or chemical function of the covered auto or its parts cause the pollution. The pollutants must escape, seep, migrate or be discharged, dispersed or released directly from an auto part designed by the manufacturer to hold, store, receive or dispose of the pollutants.

b. Prior to moving the pollutant generating property to the place where the insured receives it in order to move it either into or on a covered auto

c. After moving the pollutant generating property from the covered auto to the point of the insured’s final delivery

Paragraphs b and c do not apply if an accident occurs away from a premises any insured owns or rents and the pollutants are not in or on a covered auto, but only if the pollutant generating property is upset, overturned or damaged resulting from maintenance or use of a covered auto and upset, overturn or damage causes the polluting event.

E. Customer's Auto (03 10 change)

This is a motorized vehicle, trailer or semitrailer designed for land use in the named insured’s possession for storage, safekeeping, repair or service. The possession must be lawful but does not require the vehicle owner's consent or knowledge. The vehicle can belong to an employee or members of his or her household as long as they pay for the service the named insured provides.

Note: This 03 10 change is both a broadening and a restriction. The vehicle is covered even if the customer does not know it is in the named insured’s possession. This could be considered a broadening of coverage. However, since the purpose of the possession must be lawful, this could be considered a restriction of coverage.

F. Diminution in value is the loss of market value solely due an accident. This loss of value can be actual or perceived.

G. Employee includes leased workers but not temporary workers.

H. Garage operations is the ownership, maintenance or use of locations for garage business and portions of roads or other accesses adjoining them. It also includes the ownership, maintenance or use of autos indicated in Section I as covered autos as well as all operations necessary or incidental to a garage business.

I. Insured is any party who qualifies as an insured under Who Is An Insured. Coverage applies separately to each insured seeking coverage or against whom a claim or suit is brought. The one exception is that the limit of insurance does not apply per insured.

J. Insured contract includes the following:

1. Leases of premises

2. Sidetrack agreements

3. Easement or license agreements. However, any contract in conjunction with construction or demolition operations on or within 50 feet of a railroad is not an insured contract.

4. Obligations required by ordinance when the purpose is to indemnify a municipality. However, this does not apply to any work being done for the requesting municipality.

5. The portion of a contract or agreement that relates to the named insured’s business, including any municipal indemnification in connection with work being done for the municipality, where the named insured assumes the tort liability of another party. The tort liability must be to pay for bodily injury or property damage to a third party or organization. Tort liability is liability the named insured would have had without a contract or agreement.

6. Elevator maintenance agreements

7. The portion of an auto rental or lease contract or agreement the named insured or an employee enters into that relates to the named insured’s garage business. Any obligation the named insured or its employee has to pay for property damage to the auto is not considered an insured contract.

These contracts or agreements are not considered insured contracts:

Ones that pay an architect, engineer or surveyor for damages due to making maps, drawings, opinions, designs and related activities or from giving or failing to give directions or instructions

Ones that indemnify any party for fire damage to locations rented or loaned to the named insured
Ones that pertain to loaning, leasing or renting an auto to the named insured or its employees if done so with a driver
Ones that hold a party in the business of transporting property by auto for hire harmless for the named insured’s use of covered autos over routes or territories a public authority authorizes it to serve
Ones that indemnify a railroad for losses that result from construction or demolition within 50 feet of any railroad property, or that affects any railroad bridge, trestle, track, road-bed, tunnel, underpass or crossing

K. Leased worker is a person the named insured leases from a labor-leasing firm to work in its business. It requires an agreement between the leasing firm and the named insured. Temporary workers are not considered leased workers.

L. Loss is direct and accidental loss or damage. Garagekeepers Coverage is broadened to include any resulting loss of use.

M. Pollutants are any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

Note: This definition is consistent in all ISO coverage forms.

N. Products are goods or products the named insured made or sold in a garage business. This includes warnings or instructions given or that should have been given.

O. Property damage is not limited to just damage to tangible property. It also includes any loss of its use.

P. Suit is not limited to only civil proceedings alleging damages. It also includes any arbitration or alternative resolution proceedings as long as the insurance company consents to them. All allegations must be due to covered bodily injury, property damage or covered pollution costs or expenses.

Q. Temporary worker is neither a leased worker nor an employee. The named insured uses these workers as substitutes for permanent employees or to help out in short-term situations. The named insured must understand that temporary workers are not considered an insured. For this reason, temporary workers should not drive any company vehicles or use their vehicles for company business.

R. Trailer includes semitrailers as well as small utility trailers.

S. Work you performed is the work the named insured performed, including work another party performed on the named insured's behalf. This includes warnings or instructions that were given or that should have been given.

ISO GARAGE COVERAGE FORM AVAILABLE ENDORSEMENTS AND THEIR USES

INTRODUCTION

This list identifies endorsements available to modify the Insurance Services Office (ISO) Garage Coverage Form. It is arranged by form number and title and includes a brief explanation of the use of each form. This section does not include any state specific endorsements, changes or amendments. New endorsements introduced or changes in the 03 10 edition are in bold print.

FORM NUMBERING

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning.

The first two entries are alphabetical characters that indicate the line of insurance involved. For example, CA denotes Commercial Auto.
The next two digits designate the specific insurance category. Additional detail and information on these categories is in the next section below.
The next two digits are the form or endorsement number within the insurance category.
The last four digits are the edition date of the form or endorsement expressed in month and year format. These digits are not used in this analysis.

CA 00	Coverage Forms
CA 01	Amendatory Endorsements
CA 02	Cancellation And Suspension Endorsements
CA 03	Deductible Endorsements
CA 04	Coverage Endorsements
CA 20	Special Type Endorsements
CA 21	Uninsured Motorists Endorsements
CA 22	No-Fault Endorsements
CA 23	Commercial Auto Endorsements
CA 24	Public Transportation Endorsements
CA 25	Garage Endorsements
CA 26	Single Interest Endorsements
CA 31	Uninsured Motorists Endorsements
CA 99	Common Coverages And Rating Procedures Endorsements
IL 00–12	Interline Endorsements

AMENDATORY ENDORSEMENTS (CA 01)

CA 01 21–Limited Mexico Coverage

This endorsement opens with a stern warning about driving in Mexico. The coverage provided is excess over any other insurance and applies only if the covered auto is within 25 miles of the United States border and for trips lasting less than 10 days. The covered auto must be garaged and used in the United States and only United States residents can be insureds. Physical damage coverage repairs must be made in the United States except for those needed to make the vehicle drivable. Such Mexican-made repairs are paid based on not more than the same costs that would have been paid in the United States.

CANCELLATION AND SUSPENSION ENDORSEMENTS (CA 02)

CA 02 38–Reinstatement Of Insurance (03 10 change)

This endorsement is used to reinstate previously suspended coverages and/or vehicles. A schedule was added so that only certain items can be reinstated. Completing the schedule is very important because autos remain suspended if it is not completed properly.

CA 02 40–Suspension Of Insurance (03 10 change)

This endorsement is used to suspend the coverages and/or vehicles on the endorsement schedule. Return premiums are provided only if the suspension extends beyond 30 days. Note that only the suspension effective date is indicated. The suspension is lifted on the date on CA 02 38–Reinstatement Of Insurance.

DEDUCTIBLE ENDORSEMENTS (CA 03)

CA 03 01–Deductible Liability Coverage (03 10 change)

CA 03 02–Deductible Liability Coverage (03 10 change)

This endorsement provides liability deductibles that apply per accident. They can apply to all liability or be limited to only property damage. Credits apply for the deductibles selected based on the ISO rating plan. This endorsement is identical to CA 03 01–Deductible Liability Coverage except for one word that requires the insurance company to pay the deductible and then be reimbursed by the named insured. Under CA 03 01, the insurance company may pay the deductible and then be reimbursed. Under this endorsement, the insurance company will pay the deductible and then be reimbursed.

CA 03 03–100 Dollar Deductible For Completed Operations Does Not Apply

The $100 deductible for property damage does not apply when this endorsement is added to the Garage Coverage Form.

COVERAGE ENDORSEMENTS (CA 04)

CA 04 42–Exclusion Of Federal Employees Using Autos In Government Business (03 10 addition)

This endorsement tries to eliminate any attempt to provide coverage for the federal government under private insurance coverage. Under this coverage, the named insured or its employee acting as a federal government employee when an accident occurs is not an insured.

CA 04 44–Waiver Of Transfer Of Rights Of Recovery Against Others To Us (Waiver Of Subrogation) (03 10 addition)

No organization or person on the endorsement schedule can be subrogated against as long as a contract was signed agreeing to the waiver before any loss they were involved in occurred.

SPECIAL TYPE ENDORSEMENTS (CA 20)

CA 20 01–Lessor–Additional Insured And Loss Payee

The leased vehicles on the endorsement schedule are treated as owned autos for coverage purposes. Any lessor on the endorsement schedule is an insured for the designated vehicles and receives notice of cancellation if either the named insured or the insurance company cancels coverage.

CA 20 16–Mobile Homes Contents Coverage

This endorsement insures covered property inside, attached to and outside (within 25 feet) of a mobile home. The coverage provided is limited to certain causes of loss and specifically excludes theft. It excludes business property, sales samples, exhibition property, and certain other property. CA 20 17–Mobile Homes Contents Not Covered should be attached if this endorsement is not used.

CA 20 17–Mobile Homes Contents Not Covered

This endorsement deletes coverage for all contents in a mobile home not usually found in a truck or private passenger vehicle.

CA 20 21–Snowmobiles (03 10 change)

This endorsement is used for commercially operated snowmobiles used off public roads but away from the named insured’s premises. Symbol 19 may be used instead of this endorsement in states where snowmobiles must be registered.

Note: This edition removes all references to physical damage coverage. CA 99 28–Stated Amount Insurance should be used to provide the coverage (03 10 change)

CA 20 27–Registration Plates Not Issued For A Specific Auto

This endorsement provides the liability coverages selected for which a premium is charged for autos while using the plates on the endorsement schedule. The premium charge is per plate.

CA 20 33–Autos Leased, Hired, Rented Or Borrowed With Drivers–Physical Damage Coverage (03 10 change)

This endorsement insures the physical damage coverages selected for the non-owned vehicles on the endorsement schedule. A physical damage limit, deductible and the estimated cost of hire and a premium charge based on estimated annual cost must appear for each coverage selected.

Note: The 03 10 edition removed rates from the endorsement schedule.

CA 20 47–Additional Insured–Lessor Of Leased Equipment

This endorsement makes additional insureds of persons or organizations on the declarations or endorsement schedule that lease equipment to the named insured for liability arising out of its maintenance, use or operation of that equipment. The coverage provided is subject to three additional exclusions.

CA 20 48–Designated Insured

This endorsement adds the person or organization on the endorsement schedule as an insured for liability coverage to the extent that they qualify as such under Who Is an Insured.

CA 20 49–Additional Insured–Garages–Grantor Of Franchise

This endorsement is used to add the grantor of a franchise as additional insured for liability insurance under Garage Operations–Other Than Covered Autos.

CA 20 54–Employee Hired Autos

This endorsement includes as an insured an employee who rents or hires a vehicle without an operator in his or her own name for the named insured's benefit.

CA 20 55–Fellow Employee Coverage

This endorsement deletes the fellow employee exclusion. As a result, coverage applies if one employee injures another employee in the course of performing their duties. However, the Workers Compensation and Employee Indemnification and Employers Liability exclusions are unaffected.

CA 20 56–Fellow Employee Coverage For Designated Employees/Positions

This endorsement is similar to CA 20 55–Fellow Employee Coverage but allows specific persons, job title or positions to appear on the endorsement schedule. As a result, only actions of scheduled persons, job titles or positions that cause injury to a fellow employee are covered. Actions of all other employees involving injury to a fellow employee remain excluded.

CA 20 70–Coverage For Certain Operations In Connection With Railroads

This endorsement deletes the two exceptions in the definition of insured contract that relate to construction or demolition operations within 50 feet of a railroad with respect to use of a covered auto in operations for or affecting the railroad and for the job site on the endorsement schedule. It is designed to match a similar extension in the ISO Commercial General Liability Coverage Forms.

CA 20 71–Auto Loan/Lease Gap Coverage

This endorsement changes the Physical Damage Coverage section. The insurance company pays any unpaid amount due on the lease or loan in case of a total loss to a covered auto on the endorsement schedule to which Auto Loan/Lease Gap coverage applies and for which a premium is charged. This amount is reduced by the amount paid under Physical Damage Coverage and certain other specified charges or amounts.

UNINSURED MOTORISTS ENDORSEMENTS (CA 21)

Note: Most Uninsured and Underinsured Motorists Endorsements are mandated by each state and are not listed in this section.

CA 21 02–Split Bodily Injury Uninsured Motorist Coverage Limits

This endorsement revises CA 21 07–Split Uninsured Motorist Coverage Limits to apply to bodily injury only and eliminates all reference to property damage coverage.

CA 21 07–Split Uninsured Motorists Coverage Limits

This endorsement revises the limit of insurance section to provide separate uninsured motorists coverage limits for bodily injury per person, bodily injury per accident and property damage per accident instead of on a combined single limit basis.

CA 21 46–Split Underinsured Motorists Coverage Limits

This endorsement revises the limit of insurance section to provide separate underinsured motorists coverage limits for bodily injury per person, bodily injury per accident and property damage per accident instead of on a combined single limit basis.

COMMERCIAL AUTO ENDORSEMENTS (CA 23)

CA 23 25–Coverage For Injury To Leased Workers

This endorsement amends the Employee Indemnification and Employer’s Liability exclusions so that the definition of employee does not include leased or temporary workers.

CA 23 84–Exclusion Of Terrorism

CA 23 85–Exclusion Of Terrorism Involving Nuclear, Biological Or Chemical Terrorism

CA 23 86–Exclusion Of Terrorism Above Minimum Statutory Limits

CA 23 87–Exclusion Of Terrorism Involving Nuclear, Biological Or Chemical Terrorism Above Minimum Statutory Limits

CA 23 94–Silica Or Silica-Related Dust Exclusion For Covered Autos Exposure

This endorsement excludes bodily injury, property damage and expenses to respond to or assess silica or silica-related dust issues.

CA 23 97–Amphibious Vehicles (03 10 addition)

This endorsement excludes coverage for any vehicle that can be used on both land and water. However, it applies only when the vehicle is on the water, being launched, or while ashore.

GARAGE ENDORSEMENTS (CA 25)

CA 25 01–Broad Form Products Coverage

This endorsement deletes the defective products exclusion in the Garage Coverage Form. Coverage on property damage to the named insured's products in any one accident is subject to a $250 deductible.

CA 25 02–Dealers Driveaway Collision Coverage (03 10 change)

This endorsement deletes the exclusion for collision losses to covered autos driven more than 50 road miles from the purchase or distribution point to the destination for auto dealerships, subject to certain additional reporting requirements. The reporting requirements on the 03 10 edition were slightly changed.

CA 25 03–False Pretense Coverage (03 10 change)

This endorsement deletes the False Pretense Exclusion in the Garage Coverage Form and provides coverage for tricks and schemes that cause the named insured to part with an owned auto. The $25,000 limit can be increased. The 03 10 edition removed the rate from the endorsement schedule.

CA 25 04–Fire, Fire And Theft And Limited Specified Causes Of Loss Coverage For Dealers (03 10 change)

This endorsement is used to provide specified cause of loss coverage for dealers and other specified interests, such as automobile manufacturers or financial institutions. Causes of loss, parties and interests covered, limits, deductibles and the types of vehicles covered must be indicated in the spaces provided. The 03 10 edition revised the endorsement schedule to match the revised garage declarations.

CA 25 05–Garage Locations And Operations Medical Payments Coverage

This endorsement provides Medical Payments coverage for garage locations and operations. It does not extend to the use of an auto.

CA 25 07–Locations And Operations Not Covered

This endorsement excludes locations or operations indicated on the endorsement schedule from all coverage provided by the Garage Coverage Form.

CA 25 08–Personal Injury Liability Coverage–Garages (03 10 change)

This endorsement adds personal injury coverage to the Garage Coverage Form. It is similar to the Personal Injury Liability Coverage in the ISO Commercial General Liability Coverage Form except for not including Advertising Injury Liability Coverage. Changes made in the 12 07 edition of the Commercial General Liability (CGL) Coverage Form were added to this endorsement.

CA 25 09–Owners Of Garage Premises

This endorsement adds the building owner of a leased garage premises indicated on the endorsement schedule as an additional insured.

CA 25 10–Damage To Rented Premises Liability Coverage–Garages (03 10 change)

This is similar to damage to Damage To Premises Rented To You coverage under the CGL Coverage Form. The location, limit of insurance, and premium charge is entered in the spaces provided on the endorsement schedule. The limit is $100,000 unless modified. The 03 10 edition changed the schedule and limit of insurance section.

CA 25 11–Named Driver Collision Coverage

This endorsement adds Collision Coverage for the driver indicated on the endorsement schedule, subject to a deductible and premium charge.

CA 25 14–Broadened Coverage–Garages

CA 25 16–Garage Coverage Form–Other Than Covered Autos Exposure–Total Pollution Exclusion

This endorsement completely excludes pollution under the Garage Coverage Form. It applies only to garage operations and not to covered autos.

Note: This endorsement does not indicate that personal and advertising injury is excluded.

CA 25 18–Exclusion–Year 2000 Computer-Related And Other Electronic Problems

This endorsement excludes bodily injury, property damage and, where applicable, personal injury and advertising injury that arises in any way from actual or alleged failure of computer and electronic equipment to recognize the year 2000, later dates and similar problems.

CA 25 19–Exclusion–Year 2000 Computer-Related And Other Electronic Problems–Products/Work You Performed

This endorsement excludes bodily injury and property damage caused by the named insured's products or work it performed that arises in any way from actual or alleged failure of computer and electronic equipment to recognize the year 2000, later dates, and similar problems.

CA 25 20–Year 2000 Limited Coverage Options–Computer-Related And Other Electronic Problems

This endorsement form gives the named insured a way to select coverage for bodily injury, property damage, and/or personal and advertising injury for specified locations, products, services or work it performed to be covered that are otherwise excluded under year 2000, later dates and similar problems.

CA 25 24–Exclusion–Year 2000 Computer-Related And Other Electronic Problems–With Exception For Bodily Injury On Your Premises

This endorsement excludes all coverage except bodily injury on the named insured's premises that arises in any way from actual or alleged failure of computer and electronic equipment to recognize the year 2000, later dates, and similar problems.

CA 25 25–Year 2000 Computer-Related And Other Electronic Problems–Exclusion Of Specified Coverages For Designated Locations, Products, Services Or Work You Performed

CA 25 36–Garage Coverage Form–Other Than Covered Autos Exposure–Total Pollution Exclusion With A Building Heating, Cooling And Dehumidifying Equipment Exception And A Hostile Fire Exception

This is the same exclusion as CA 25 16 except that it has exceptions for building heating, cooling and dehumidifying equipment and for hostile fires.

CA 25 37–Fungi Or Bacteria Exclusion–Garage Operations–Other Than Covered Autos

This endorsement excludes bodily injury, property damage and, where applicable, personal injury and advertising injury arising from any fungus or bacteria not intended for human consumption. It also applies to expenses to respond to the presence of fungi or bacteria. It applies only to Garage Operations–Other Than Covered Autos.

CA 25 38–Limited Fungi Or Bacteria Coverage For Garage Operations–Other Than Covered Autos

This endorsement amends the coverage provided to apply to bodily injury or property damage arising out of an incident involving fungi or bacteria up to the aggregate limit indicated on the endorsement schedule. Coverage does not apply to personal injury or advertising injury. This exclusion does not apply to incidents of food or beverage poisoning and applies only to Garage Operations–Other Than Covered Autos.

CA 25 39–Silica Or Silica-Related Dust Exclusion For Other Than Covered Autos Exposure–Garage Coverage Form

This endorsement excludes bodily injury, property damage and, where applicable, personal injury and advertising injury arising in any way from silica or silica-related dust. It also applies to expenses to respond to the presence of silica or silica-related dust.

SINGLE INTEREST ENDORSEMENTS (CA 26)

CA 26 01–Single Interest Automobile Physical Damage Insurance Policy (Individual Policy Form)

This policy provides physical damage coverage to the seller of a vehicle for losses caused by the retail purchaser of the specific auto and applies only when the seller retains an interest in the vehicle because of a payment arrangement with the seller. It is a self-contained policy and applies specifically to one purchase.

CA 26 02–Single Interest Automobile Physical Damage Insurance Policy (Finance Master Policy Form)

This policy provides physical damage coverage to the seller of vehicles for losses caused by the retail purchaser of those autos and applies only when the seller retains an interest in the vehicle because of a payment arrangement with the seller. It is a self-contained policy and applies on a blanket basis for dealers.

CA 26 05–Single Interest Deductible

This endorsement is used with CA 26 01–Single Interest Automobile Physical Damage Insurance Policy (Individual Policy Form) and CA 26 02–Single Interest Automobile Physical Damage Insurance Policy (Finance Master Policy Form) to add either a $100 or $250 deductible to the physical damage coverages provided by those single interest policies.

COMMON COVERAGES AND RATING PROCEDURES ENDORSEMENTS (CA 99)

CA 99 03–Auto Medical Payments Coverage

CA 99 10–Drive Other Car Coverage–Broadened Coverage For Named Individuals (03 10 change)

CA 99 14–Fire, Fire And Theft, Fire, Theft And Windstorm And Limited Specified Causes Of Loss Coverages

This endorsement provides extremely limited physical damage coverage.

CA 99 16–Hired Autos Specified As Covered Autos You Own (03 10 change)

This endorsement treats any non-owned auto on the endorsement schedule as a covered auto for either liability or physical damage coverages. The symbols on the declarations determine whether these autos should also be indicated on the declarations.

Note: The 03 10 edition clarifies the intent of this endorsement but does not change it.

CA 99 18–Individual Named Insured–Dealers Only

This endorsement must be attached when the named insured is an individual. It extends the definition of named insured to include a spouse living in the same household.

CA 99 23–Rental Reimbursement Coverage (03 10 change)

This endorsement provides rental reimbursement coverage to covered autos on the endorsement schedule that sustain loss or damage from a covered cause of loss. The amount paid is subject to the maximum limit for any single day, the number of days and the total amount indicated for any one period. It is subject to several limitations or exclusions, such as coverage not applying if other spare or reserve autos are available for use.

Note: The 03 10 edition revises the schedule so that only one type of auto can be designated.

CA 99 28–Stated Amount Insurance (03 10 change)

This endorsement has a stated amount of insurance for each vehicle on the endorsement schedule. As a result, physical damage losses are settled for the actual cash value, the cost to repair or replace, or the stated amount of insurance, whichever is least. While a cost savings accompanies this endorsement, the named insured must understand that the loss settlement may be for an amount less than the stated amount in some cases.

Note: The 03 10 edition separates the deductible and limit of insurance sections for clarification purposes only.

CA 99 30–Tapes, Records And Discs Coverage (03 10 change)

This endorsement deletes the physical damage exclusion applying to tapes, records and discs and extends comprehensive coverage to apply to tapes, records and discs the named insured or a family member owns while in a covered auto at the time of loss for up to $200, without being subject to a deductible.

Note: The 03 10 edition adds a schedule to designate the vehicles this endorsement applies to.

CA 99 33–Employees As Insureds

This endorsement adds the named insured's employees as insureds when using an auto, the named insured does not own, hire or borrow in its business or personal affairs.

CA 99 38–Split Liability Limits–Garages

This endorsement changes the limit of insurance for liability coverages from a single limit to split limits for bodily injury liability-each person, bodily injury liability-each accident and property damage liability-each accident.

CA 99 40–Exclusion Or Excess Coverage Hazards Otherwise Insured

This endorsement excludes coverage for a covered auto insured for liability coverage under another coverage form or policy or to make this coverage excess over the other coverage.

CA 99 44–Loss Payable Clause

This endorsement adds provisions that apply to loss payments when a loss payee is indicated on the policy.

CA 99 47–Employee As Lessor (03 10 change)

This endorsement adds the auto on the endorsement schedule as a covered owned auto and includes the employee who leases it to the named insured as an insured.

Note: The 03 10 edition removes the words “under the coverage for which it is a covered auto.”

CA 99 54–Covered Auto Designation Symbol

This endorsement is used to add a covered auto symbol to any of the Business Auto Coverage Forms and to manuscript a definition for it to describe what is considered a covered auto.

CA 99 55–Pollution Liability–Broadened Coverage For Covered Autos–Garage Coverage Form

This endorsement changes the liability pollution exclusion in the coverage form to provide pollution coverage assumed under a contract or agreement but only while the pollutants are in transit.

CA 99 59–Garagekeepers Coverage–Customers' Sound-Receiving Equipment (03 10 change)

This coverage is similar to that provided under CA 99 37–Garagekeepers Coverage except that it applies only to customers’ sound-receiving equipment.

CA 99 60–Audio, Visual And Data Electronic Equipment Coverage Added Limits (03 10 change)

This endorsement is changed from one that provides coverage to one that allows scheduling of limits in excess of the $1,000 sub-limit for audio, visual and data electronic equipment coverage provided in the coverage form. The limit on the endorsement schedule is in addition to the sub-limit and is not a replacement.

Note: Since this endorsement does not amend the limit of insurance section of the coverage form, it appears to still be a sub-limit and subject to the other limit of insurance provisions. The lack of clarity may result in loss settlement confusion that may benefit the named insured due to its ambiguity.

CA 99 61–Loss Payable Clause–Audio, Visual And Data Electronic Equipment Added Limits (03 10 change)

This endorsement is changed from one that provides coverage to one that allows scheduling of limits in excess of the $1,000 sub-limit for audio, visual and data electronic equipment coverage provided in the coverage form. The limit on the endorsement schedule is an addition to the sub-limit and is not a replacement. Loss payment is for the benefit of the named insured and the scheduled loss payee.

CA 99 90–Optional Limits–Loss Of Use Expenses (03 10 change)

This endorsement modifies the Physical Damage Loss Of Use Expense Coverage Extension limits of $20 per day with a $600 maximum. It allows a greater number of days and a higher maximum.

Note: The lead in language is the only change.

INTERLINE ENDORSEMENTS (IL 00 THROUGH IL 12)

IL 00 03–Calculation Of Premium

This endorsement states that the insurance company uses the rules and rates in effect as of the policy renewal or anniversary date.

IL 00 17–Common Policy Conditions

This mandatory endorsement provides certain common policy conditions.

IL 00 21–Nuclear Energy Liability Exclusion Endorsement (Broad Form)

This endorsement excludes hazards relating to nuclear energy liability and is attached to all policies.

IL 09 11–Supplement To Retrospective Premium Endorsement-Final Premium Computation

This endorsement eliminates the requirement to make calculations of the retrospective premium final when attached to a policy subject to the Retrospective Premium Endorsement. It also clarifies the premium calculation intervals.

IL 09 18–Retrospective Premium Endorsement–One Year Plan–Multiple Lines

This endorsement provides for retrospective rating of a policy and contains a schedule used to develop the premium for a one-year plan.

IL 09 19–Retrospective Premium Endorsement–Three Year Plan–Multiple Lines

This endorsement provides for retrospective rating of a policy and contains a schedule used to develop the premium for a three-year plan.

IL 09 20–Retrospective Premium Endorsement–Long-Term Construction Project–Multiple Lines

This endorsement provides for retrospective rating of long-term construction projects and contains a schedule used to develop the premium.

IL 09 21–Retrospective Premium Endorsement–Short Form

This endorsement permits addition of a policy to an existing retrospective premium endorsement rating procedure.

IL 09 22–Exclusion Of Aviation Exposures

This endorsement exempts the scheduled aviation exposures from the retrospective rating plan.

IL 09 23–Retrospective Premium Endorsement–Exclusion Of Retrospective Development Factors

This endorsement deletes reference to any Retrospective Development Factors in the states scheduled.

IL 12 01–Common Policy Changes

This generic change endorsement permits various changes that affect all coverages provided in the policy.

COMPARE: ISO CG 00 01 TO ISO CA 00 05 AND CA 25 14

INTRODUCTION

This comparison of the Insurance Services Office CG 00 01–Commercial General Liability Coverage Form with ISO CA 00 05–Garage Coverage Form and CA 25 14–Broadened Coverage–Garages follows the Commercial General Liability Coverage Form arrangement.

Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Section I–Coverages
Coverage A–Bodily Injury And Property Damage Liability	All sums the insured is legally obligated to pay due to bodily injury or property damage. The insurance coverage form must apply.		Same except the BI or PD must be related to the garage operations and not covered autos.
Coverage A–Bodily Injury And Property Damage Liability (cont.)	Legal defense provided for covered occurrences. The company decides when it investigates or settles claims but efforts end when insurance is exhausted by payment of judgments.		Same
Coverage A–Bodily Injury And Property Damage Liability (cont.)	The bodily injury or property damage must be due to an occurrence that takes place in the coverage territory and during the policy period.		The bodily injury or property damage is covered if an accident takes place in the coverage territory during the policy period.
Coverage A–Bodily Injury And Property Damage Liability (cont.)	Prior knowledge limitations and damages due to loss of services, loss or care, and death are included as damages from bodily injury.		Same with respect to prior knowledge limitations, but no references to consequential loss of service.
Exclusions
Expected Or Intended Injury	No coverage if damages are due to bodily injury or property damage expected or intended by the named insured except for reasonable force to protect persons or property.		Same
Contractual Liability	No coverage for assumed liability from a contract except if liability existed regardless of contract or an insured contract prior to the loss. Note: Defense costs for parties to the insured contract are included provided the costs were assumed as part of the signed contract.		Same with respect to assumed liability. No similar reference to assumption of defense costs.
Liquor Liability	Applies only if the named insured is engaged in any aspect of the liquor business		No corresponding exclusion
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Workers Compensation And Similar Laws	No coverage for workers compensation, disability benefits, or similar obligations		Same
Employers’ Liability	Injuries while working/performing duties or for injured employee’s family are excluded. Coverage applies if assumed under an insured contract.		Same
Employers’ Liability (cont.)	No corresponding language		The entire exclusion does not apply to domestic employees not subject to workers compensation.
Employers’ Liability (cont.)	No corresponding language–similar to CG 21 47–Employment Practices Exclusion		No coverage for any employment related practices such as termination, refusal to employ, harassment, etc.
Pollution	No coverage except for hostile fire, equipment to heat, cool or dehumidify the building, material brought to a premises in connection with operations performed by named insured or on named insured’s behalf. No coverage for expenses due to any regulatory requirements to test, etc.		Essentially the same
Aircraft, Auto Or Watercraft	No coverage for any aspect of aircraft, auto or watercraft ownership or operation, including allegations of improper supervision		Similar provision, but applies to aircraft and watercraft only–no reference to auto or allegations of improper supervision
Aircraft, Auto, Or Watercraft (cont.)	Coverage applies to watercraft on shore, non-owned watercraft less than 26 feet long, parking non-owned autos on premises, liability assumed under contract and mobile equipment.		Coverage applies to watercraft on shore and non-owned watercraft less than 26 feet long. No reference to auto or mobile equipment in exclusion so no need for an exception
Mobile Equipment	Excludes transporting equipment with owned or rented auto or for use of mobile equipment in racing and similar events		No corresponding exclusion
War	Excluded		Same
Damage To Property	No coverage for property damage to property the named insured owns, rents or occupies, including costs to improve safety		Same, except no corresponding language for costs to improve safety
Damage To Property (cont.)	No coverage for property damage to any property sold, abandoned or given away unless the named insured built it and never occupied it		No corresponding language
Damage To Property (cont.)	No coverage for any loaned property		Same
Damage To Property (cont.)	No coverage for care, custody or control or personal property or real property being worked on if damaged by the named insured’s work except assumed sidetrack liability		Similar, as it applies to all, and not to just personal property. No reference to real property
Damage To Property (cont.)	No coverage for any property damaged because of the named insured’s faulty work, unless covered under the products/completed operations hazard or assumed sidetrack liability		Same but no exceptions
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Damage To Property (cont.)	Coverage applies to items 1, 3, and 4 rented to a named insured if the rental is for seven or fewer consecutive days. The maximum limit is the applicable Damage To Premises Rented To You Limit.		Refer to Fire Legal Liability Coverage
Damage To Property (cont.)	Coverage applies to item 2 if it was built to sell and was never occupied.		No corresponding language
Damage To Your Product	No coverage for property damage to the named insured's own product due to it or any part of it		Similar
Damage To Your Work	No coverage for property damage to the named insured’s work that arises from the work or any part of it		Similar
Damage To Impaired Property Or Property Not Physically Injured	No coverage for loss of use of property if there is no property damage		Same
Recall Of Products, Work Or Impaired Property	No coverage for any type of product recall		Same
Personal And Advertising Injury	No coverage for any bodily injury arising out of personal and advertising injury		No specific exclusion but CA 25 14 provides this coverage
Electronic Data	No coverage for damage caused by the loss or loss of use of electronic data		No corresponding exclusion
Fellow Employee	No corresponding exclusion		No coverage for injuries to fellow employees
Distribution of Material In Violation Of Statutes	No coverage for injury or damage due to violations of TCPA or CAN-SPAM Acts		Same
Coverage B–Personal And Advertising Injury Liability	Pays damages an insured must pay that involve personal injuries or certain advertising-related activities that qualify for coverage, including cost of legal defense. Any investigation or payment is at the company’s discretion with payment and defense obligations ending when the policy limits are used up. Eligibility requires that an incident take place within the coverage territory and during the policy period.		Part of CA 25 14–Broadened Coverage–Garages
Exclusions
Knowing Violation Of Rights Of Another	No coverage for an insured who knowingly injured a person by violating that person’s rights		Part of CA 25 14–Broadened Coverage–Garages
Material Published With Knowledge Of Falsity	No coverage for communicating information in any way that an insured knows is false		Part of CA 25 14–Broadened Coverage–Garages
Material Published Prior To Policy Period	No coverage for damage or injury related to publication date that is earlier than the policy period		Part of CA 25 14–Broadened Coverage–Garages
Criminal Acts	No coverage for any criminal act by any insured or at any insured’s direction		Part of CA 25 14–Broadened Coverage–Garages
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Breach Of Contract	No coverage for breach of contract unless it was due to an implied contract with respect to the use of advertising ideas		Part of CA 25 14–Broadened Coverage–Garages
Quality Or Performance Of Goods–Failure To Conform To Statements	No coverage if the products advertised do not do what they are supposed to do		Part of CA 25 14–Broadened Coverage–Garages
Wrong Description Of Prices	No coverage due to mistakes in prices of items in advertisements		Part of CA 25 14–Broadened Coverage–Garages
Infringement of Patent, Copyright, Trademark Or Trade Secret	No coverage for infringement except in the named insured’s advertisements		Part of CA 25 14–Broadened Coverage–Garages
Insureds In Media And Internet Type Businesses	No coverage for anyone in the advertising or media, web designer, or internet search provider business. Certain web design aspects are included. These businesses are covered for only “personal injury” type offenses.		Part of CA 25 14–Broadened Coverage–Garages
Electronic Chatrooms Or Bulletin Boards	No coverage for anything that takes place on bulletin boards, chatrooms or any similar area the insured hosts or controls		Part of CA 25 14–Broadened Coverage–Garages
Unauthorized Use Of Another’s Name Or Product	No coverage if another’s name is used in any internet communications in order to mislead the marketplace		Part of CA 25 14–Broadened Coverage–Garages
Pollution	No coverage for pollution		Part of CA 25 14–Broadened Coverage–Garages
Pollution-Related	No coverage for pollution cleanup costs or expense		Part of CA 25 14–Broadened Coverage–Garages
Employment Related	Not mentioned but often excluded using CG 21 47		No coverage for employment related offenses.
War	Excluded		Same
Distribution of Material In Violation Of Statutes	No coverage for injury or damage due to violations of TCPA or CAN-SPAM Acts		Same
Coverage C–Medical Payments	All medical expenses incurred due to accidents either on or next to owned or rented premises or due to operations. Accidents must take place within the coverage territory and during the policy period. All expenses and reports must be submitted within a year. Injured persons must submit to an independent physical examination. Payment is regardless of fault and includes first aid and necessary medical services, including funeral services.		No Medical Payments coverage in either form. CA 25 05–Garage Locations And Operations Medical Payments Coverage provides this coverage.
Exclusions
Any Insured	Only volunteer workers are covered		No Medical Payments coverage in either form
Hired Person	No coverage for any person hired to work for any insured or any tenant		No Medical Payments coverage in either form
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Injury On Normally Occupied Premises	No coverage for persons injured in space they normally occupy		No Medical Payments coverage in either form
Workers Compensation And Similar Laws	No coverage if the injured party is eligible for workers compensation or other benefits		No Medical Payments coverage in either form
Athletic Activities	No coverage if the party was injured while participating in exercise or athletic activities		No Medical Payments coverage in either form
Products-Completed Operations Hazard	No coverage if the accident was part of the products-completed operations hazard		No Medical Payments coverage in either form
Coverage A Exclusions	No coverage if the injury is a type excluded under bodily injury and property damage coverage		No Medical Payments coverage in either form
Supplementary Payments–Coverages A And B
Insurance Company Expenses	All are paid		Same
Bail Bonds	Up to $250. Does not furnish bonds		Up to $2,000. Does not furnish bonds
Bonds To Release Attachments	Costs of bonds up to the limit of insurance		Same
Insured's expenses incurred at the company's request	All reasonable expenses plus loss of earnings up to $250 per day		Same
Insured's court costs in a suit	All are paid except for attorney’s fees and expenses taxed by the court		Same
Prejudgment interest	All are paid unless the company offers the policy limits		No corresponding language
Post judgment Interest	All are paid based on the limit of insurance		Same
Third party supplementary payments	Paid subject to meeting numerous stipulations. However, all payments are within policy limits		No corresponding language
Section II–Who is An Insured
Individual	Named insured and spouse		Same
Partnership	Named insured, partners and partners' spouses		Similar, but partners and spouses are not covered for personal and advertising injury
Joint venture	Named insured and members		No corresponding language
Limited liability company	Named insured, members and managers		Same and including spouses but does not mention managers
Other organization	Named insured, executive officers, directors and stockholders		Same
Trust	Named insured and trustees		No corresponding language
Volunteer workers and employees	Covered but with significant limitations		Employees are covered but volunteer workers are not mentioned. No limitations
Newly acquired or formed organizations	Coverage applies for up to 90 days following the acquisition or formation but not for any prior occurrences or offenses		Similar
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 CA & 25 14 03 10
Section III–Limits Of Insurance
Limits on the declarations	The limits on the declarations are the most paid regardless of number of insureds, suits or claims.		Same
General Aggregate Limit	The General Aggregate Limit is the most paid during the policy period for all coverages except products/completed operations that has its own separate limit.		Same except medical payments is a separate endorsement and not part of the aggregate. All coverages provided in CA 25 14–Broadened Coverages–Garages are part of the aggregate.
Products-Completed Operations Aggregate Limit	Products-Completed Operations Aggregate Limit is the most paid during the policy period for all such damages.		No separate aggregate. Products-Completed Operations are subject to the general aggregate.
Personal And Advertising Injury Limit	Personal And Advertising Injury Limit is the most paid for all such damage and is subject to the deductible and the General Aggregate Limit.		Same
Each Occurrence Limit	This is the most paid for all damages for all bodily injury, property damage, medical payments and fire legal in a single incident. It is subject to either of the two aggregates.		Garage uses an Each Accident Limit that is the most paid for all damages under all coverages. Medical Payments remain separate.
Damage To Premises Rented to You Limit	The per-premises limit is $50,000 and is subject to the occurrence limit. It can be increased.		The per-premises limit is $100,000 and is subject to the aggregate limit. It can be increased.
Medical Expense Limit	This is the most paid for all medical expenses due to bodily injury to one person.		No corresponding language
Application of Aggregate Limit	Aggregates apply for the duration of the policy term, whether it is 12 months, less than 12 months, more than 12 months, or an extended policy period.		Same
Deductible	No corresponding language		A $100 property damage deductible applies to damage caused by work the named insured performed on a vehicle.
Section IV–Commercial General Liability Conditions
Bankruptcy	Bankruptcy or insolvency of the insured does not relieve the insurance company of its obligations.		Same
Duties In The Event Of Occurrence, Offense, Claim Or Suit	A number of duties of the named insured are required to ensure that the company’s rights are protected and that it is notified promptly.		Similar
Legal Action Against Us	The named insured cannot sue the insurance company until all terms and conditions in the coverage form are met.		Same
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Other Insurance	This coverage is primary unless the other coverage is for fire, extended coverage, builders’ risk, installation risk, insured’s work or for loss due to maintenance or use of aircraft, autos or watercraft. If the other insurance is primary, this insurance shares the loss by contribution until the limit is exhausted. If the other coverage does not permit contribution, the company pays no more than the fair contribution. If this insurance is excess, the company has no duty to defend but will do so if no one else does. If it does, it takes the named insured’s rights against other companies. The company pays only the amount over the sum that the other insurers should have paid plus self-insured amounts and deductibles the named insured owes. The remaining loss is shared with any other excess insurance other than excess insurance actually purchased for that purpose.		Primary, but the company pays only the fair proportion of the loss whether other coverage is primary or excess
Premium Audit	Premiums are estimates and may be audited.		Similar. However, if the policy term is for more than one year, premium must be recalculated at the beginning of each policy year.
Representations	The named insured agrees that the statements on the declarations are accurate and complete, are based on its representations, and that coverage is issued relying on those representations.		Insurance is void if there is any fraud on the part of the named insured or if there is intentional concealment or misrepresentation regarding the coverage or any claims.
Separation Of Insureds	Each insured is treated as though it is the only insured, except with respect to the maximum limit payable. The first named insured has certain assigned rights, but it does not affect the handling of claims.		The definition of insured includes a separation of insured statement.
Transfer Of Rights Of Recovery Against Others To Us	All rights of recovery transfer to the company and the insured is not to interfere with them.		Same except it does not apply for medical payments coverage
When We Do Not Renew	Insurance company gives at least 30 days notice to the first named insured before non-renewing.		No corresponding language
Liberalization	No corresponding language		Any revision to the coverage without an additional premium charge automatically extends to coverage effective as of its approval date.
Two Or More Coverage Forms Or Policies Issued By Us	No corresponding language		The highest applicable limit acts as the single, maximum limit, regardless of the number of coverage forms or policies.
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Section V–Definitions
Advertisement	Information publicly broadcast in any medium to attract customer sales. If on the Internet, only the part of the website that attracts customers is considered an advertisement.		Same but no reference to website or electronic publications
Auto	A land motor vehicle intended for use on public roads, including trailers, semi-trailers and attached machinery but not mobile equipment		Similar but no limitation for use on public roads and no reference to machinery and equipment or mobile equipment
Bodily Injury	Any sickness, disease or other injury to the body of a person, including that person's death resulting from an injury, sickness, or disease		Same but also includes incidental medical malpractice provided the insured is not in the health care business
Coverage Territory	The United States of America and its territories and possessions, Canada and Puerto Rico. Suits must be brought in these places. International airspace or waters if the injury or damage takes place during travel or transit between these places. Worldwide if the products or goods were made in these places, the traveler lives in them and is on short term business elsewhere, and personal and advertising injury caused by the Internet		Not a defined term It is part of the policy conditions. Similar but no reference to the Internet
Employee	Leased workers are considered employees. Temporary workers are not.		Same
Executive Officer	Any person who occupies an officer’s position as provided for in the company charters, by-laws or a similar document		No corresponding definition
Hostile Fire	Any fire that escapes its confines		No corresponding definition
Impaired Property	Property made useless or less useful because it has one of the named insured's products that is defective or dangerous or because the named insured did not fulfill a service contract and the property can regain its usefulness if the named insured repairs the product or fulfills the contract		No corresponding definition
Insured Contract	Insured contract includes leases of premises, sidetrack agreements, easement or license agreements, obligations required by ordinance, elevator maintenance agreements and tort liability assumed by contract. It does not include contracts involving work within 50 feet of a railroad or that indemnify architects or engineers.		Same except for adding contracts that loan, lease or rent a car with a driver are not insured contracts and that any contract that holds someone harmless who has a public authority to transport goods and the insured is hired to transport for that firm is also not an insured contract.
Leased Worker	A person contracted to work for the named insured through a leasing agency but not a temporary worker		Same
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Loading or unloading	Handling items starting at the point where they are accepted and ending at the point of delivery. Does not include the use of mechanical devices not attached to aircraft, watercraft or auto		No corresponding definition
Mobile equipment	A variety of land vehicles intended for use off public roads		No corresponding definition
Occurrence	An accident including continuous exposure to the same conditions		No corresponding definition but the definition of accident is similar
Personal and advertising injury	False arrest, wrongful prosecution, improper invasion of tenants’ rights, slander, libel, violation of rights, use of ideas of others in advertising, infringement of copyright, etc., of others in advertising		Same
Pollutants	Any solid, liquid, thermal or gaseous irritant or contaminant, including waste		Same
Products-completed operations hazard	Any bodily injury or property damage due to products or work except products still in the named insured's possession and work it has not yet completed		No corresponding definition
Property damage	Physical damage to and loss of use of property and loss of use of property not physically damaged. Electronic data is not considered tangible property.		Property damage to tangible property or its loss of use
Suit	Any civil proceeding including arbitration and other alternative dispute resolutions where injury or damage is alleged		Same
Temporary worker	A person who substitutes for a regular employee or is hired for a short term or seasonal situation		Same
Volunteer worker	One who works as an employee but is not compensated		No corresponding definition
Your product		Goods sold, made, handled, distributed or disposed of by the named insured or on its behalf, including their containers. All warranties and instructions are part of the products.	Similar but defined as “product”. All goods must be part of the garage business. No reference to warranties
Your work		Any work done by the named insured, on its behalf, and all materials included in the process. It includes warranties and instructions	Similar but defined as “work you performed”. No reference to warranties or materials and parts.
Accident		No corresponding definition	Similar to “occurrence”
Customers auto		No corresponding definition	Any "auto" left by a customer including employees and their families who leave vehicles and will pay for services
Diminution in value		No corresponding definition	Loss of value of a vehicle due to an accident. Loss may be actual or perceived.
Coverage Form Feature	CG 00 01 12 07		CA 00 05 03 10 & CA 25 14 03 10
Garage operations	No corresponding definition		All premises associated with a garage business and adjoining roadways and all operations needed to conduct garage operations
Insured	No corresponding definition		Any person or organization in the "Who Is An Insured" provision
Loss	No corresponding definition		Any accidental but direct loss or damage. Under Garagekeepers coverage, loss of use is considered part of the loss.
Products	No corresponding definition		Goods or products the named insured made or sold in its garage business, including providing or failing to provide warnings or instructions
Trailer	No corresponding definition		Trailer includes semitrailers
Work you performed	No corresponding definition		Includes work done by others on the named insured's behalf, including providing or failing to provide warnings or instructions
Garage Coverages not referenced in the CGL
Host Liquor Liability Coverage	No specific reference but coverage is similar due to the wording of the liquor liability exclusion		Any serving of alcohol incidental to the garage operations is covered for bodily injury and property damage if the named insured is not in the liquor business
Incidental Medical Malpractice Liability Coverage	No specific reference but not excluded. A professional exclusion is needed to exclude professional health care services.		Coverage is provided for injury due to providing or failing to provide health care services, giving food/drink for health care services or giving drugs or other medical devices. Persons in the business of providing any of these are excluded.

COMPARE: CA 00 01–BUSINESS AUTO COVERAGE FORM TO CA 00 05–GARAGE COVERAGE FORM

INTRODUCTION

This summary comparison is brief and not as thorough as the detailed analyses for each of these coverage forms.

FORMAT

CA 00 01–Business Auto Coverage Form has five sections. CA 00 05–Garage Coverage Form has six. The additional section in CA 00 05 is Garagekeepers Coverage. This comparison follows the Business Auto Coverage Form and addresses Garagekeepers Coverage last.

SECTION I–COVERED AUTOS

Description Of Covered Auto Designation Symbols

Both coverage forms open with a description of covered auto designation symbols. The definitions in both forms are similar but several definitions in the Garage Coverage Form are unique.

Symbol Comparison
Symbol Meaning	CA 00 01–Business Auto	CA 00 05–Garage
Any Auto	1	21
Owned Autos Only	2	22
Owned Private Passenger Autos Only	3	23
Owned Autos Other Than Private Passenger Autos Only	4	24
Owned Autos Subject To No-Fault	5	25
Owned Autos Subject To Compulsory Uninsured Motorists Law	6	26
Specifically Described Autos	7	27
Hired Autos Only	8	28
Non-Owned Autos Only	9	N/A
Non-Owned Autos Used In Your Garage Business	N/A	29
Mobile Equipment Subject To Compulsory Or Financial Responsibility Or Other Motor Vehicle Insurance Law Only	19	N/A
Autos Left With You For Service, Repair, Storage Or Safekeeping	N/A	30
Dealers Autos (Physical Damage Coverages)	N/A	31

Note: The definition of Non-Owned is slightly different and more limited in the Garage Coverage Form. Symbol 9 in the Business Auto Coverage Form includes only non-owned autos used in the named insured’s business or its personal affairs. Symbol 29 in the Garage Coverage Form includes only non-owned autos used in the named insured's garage business.

Owned Autos You Acquire After The Policy Begins

These symbols determine if coverage applies to newly acquired autos.

· Business Auto Coverage Form symbols 1, 2, 3, 4, 5, 6 and 19 extend coverage to similar autos the named insured acquires during the policy term. Symbol 7 extends coverage to similar autos acquired during the policy term if all owned vehicles are scheduled and insured, or if the acquisition replaces one of them and the named insured notifies the insurance company of the acquisition within 30 days of the acquisition date.

· Garage Coverage Form symbols 21, 22, 23, 24, 25 and 26 extend coverage to similar autos the named insured acquires during the policy term. Symbol 27 extends coverage to similar autos acquired during the policy term if all owned vehicles are scheduled and insured, or if the acquisition replaces one of them and the named insured notifies the insurance company of the acquisition within 30 days of the acquisition date.

Certain Trailers, Mobile Equipment And Temporary Substitute Autos

This is liability coverage only. While the coverage provided for trailers and substitute autos is the same in both coverage forms, the Garage Coverage Form does not mention mobile equipment while being towed or carried by a covered auto because this coverage form does not exclude mobile equipment.

SECTION II–LIABILITY COVERAGE

The liability insurance provided under the Garage Coverage Form is split between the Garage Operations–Other Than Covered Autos and Garage Operations–Covered Autos sections. Since this is an auto comparison, all references are to only the Auto portion.

All coverages are identical except that the Garage Coverage Form requires that an accident result from garage operations and involve ownership, maintenance or use of covered autos. The Business Auto Coverage Form only requires that an accident involve ownership, maintenance or use of a covered auto.

Who Is An Insured

Both coverage forms list the same groups of insureds, but the Garage Coverage Form changes a few items to correspond to those business operations.

The Business Auto Coverage Form does not cover anyone who works on a covered auto, but the Garage Coverage Form excludes only persons not associated with the named insured's garage operation.
The Business Auto Coverage Form excludes any person who moves items to or from vehicles. The Garage Coverage Form does not have this limitation.
The Garage Coverage Form does not include customers as insureds if the garage is a dealership. They are covered to the extent of applicable minimum financial responsibility limits if no other coverage applies.

Coverage Extensions

This section is identical in both forms.

Exclusions

These exclusions apply to both forms:

Expected Or Intended Injury
Contractual
Workers' Compensation
Employee Indemnification And Employer's Liability
Fellow Employee
Care, Custody Or Control

Note: The Garage Coverage Form also excludes property owned, rented or occupied by the insured, property loaned to the insured, and property held for sale or being transported by the insured.

Pollution

Note: The Garage Coverage Form separates this into two exclusions.

Pollution Exclusion Applicable To Garage Operations–Other Than Covered Autos
Pollution Exclusion Applicable To Garage Operations–Covered Autos

War
Racing
These exclusions apply to only the Business Auto Coverage Form:
Handling Of Property
Movement Of Property By Mechanical Device
Operations
Completed Operations

These exclusions apply to only the Garage Coverage Form:

Watercraft Or Aircraft
Defective Products
Work You Performed
Loss Of Use
Products Recall
Distribution Of Material In Violation Of Statutes Exclusion Applicable To Garage Operations–Other Than Covered Autos

Limit Of Insurance

This section is identical for the Covered Autos section.

SECTION III–PHYSICAL DAMAGE COVERAGE

Coverage

This section is identical in both forms. The three Physical Damage coverage options are:

Comprehensive
Specified Causes Of Loss
Collision

Note: Towing coverage applies if indicated on the declarations. However, it is not available for dealerships.

Exclusions

These exclusions apply to both forms:

Nuclear Hazard
War Or Military Action
Racing
Wear And Tear, Freezing, Mechanical Or Electrical Breakdown
Blowouts, Punctures Or Road Damage To Tires
Electronic Devices Or Equipment
Diminution In Value

These exclusions apply only to the Garage Coverage Form:

Autos Leased To Others
False Pretense
Dealership Exclusions
Profits
Unnamed Location 45 Days After Acquisition
Autos Driven More Than 50 Miles Between Points Of Purchase And Distribution

Limit of Insurance

Both coverage forms address the impact of depreciation, actual cash value, and repair and replacement. A dealership has a special limit of insurance that provides for a maximum loss at a particular location and a maximum loss on property in transit. Reporting provisions apply to dealerships and accuracy and timeliness of reports determines the limits available.

Deductible

Both coverage forms address how deductibles are applied in case of loss. Dealerships have a maximum per loss deductible that must appear on the declarations.

SECTION IV–BUSINESS AUTO CONDITIONS

These conditions are similar in both coverage forms:

Loss Conditions

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

Loss Conditions

Bankruptcy
Concealment, Misrepresentation Or Fraud
Liberalization
No Benefit To Bailee–Physical Damage Coverages
Other Insurance
Premium Audit
Policy Period, Coverage Territory

Note: The Garage Coverage Form adds worldwide products coverage.

Two Or More Coverage Forms Or Policies Issued By Us

SECTION V–DEFINITIONS

These definitions are similar in both coverage forms:

Accident
Auto
Bodily injury
Covered pollution cost or expense
Diminution in value
Employee
Insured
Insured Contract

Note: The Garage Coverage Form includes Commercial General Liability-related contracts.

Leased Worker
Loss
Pollutants
Property Damage
Suit
Temporary Worker
Trailer
We, us and our
You and your

The definition of Mobile equipment is in only the Business Auto Coverage Form.

These definitions are in only the Garage Coverage Form:

Customer's auto
Garage operations
Products
Work you performed

SECTION III–GARAGEKEEPERS COVERAGE

This section is unique to the Garage Coverage Form. It insures the garage's customers’ vehicles on either a direct damage or a legal liability basis.

COMPARE: CA 00 01–BUSINESS AUTO COVERAGE FORM TO CA 00 05–GARAGE COVERAGE FORM KNOWLEDGE TESTER QUIZ

QUESTIONS

1. How do these coverage forms handle coverage for trailers, substitute autos, and mobile equipment?

2. Briefly describe Section II–Liability Coverage in these two coverage forms.

3. Is there any difference between the two coverage forms with respect to "Who Is An Insured"?

4. Name the Physical Damage Coverage exclusions that are only in the Garage Coverage Form.

5. Compare the symbols used to describe covered autos in these two coverage forms.

ANSWERS

1. Both coverage forms provide identical coverage for trailers and substitute autos. The Garage Coverage Form does not mention mobile equipment because it does not exclude mobile equipment.

2. The liability insurance provided under the Garage Coverage Form is split between the Garage Operations–Other Than Covered Autos and Garage Operations–Covered Autos sections. All coverages are identical except that the Garage Coverage Form requires that an accident result from garage operations and involve ownership, maintenance or use of covered autos. The Business Auto Coverage Form only requires that an accident involve ownership, maintenance or use of a covered auto.

3. Both coverage forms list the same groups of insureds, but the Garage Coverage Form changes a few items to correspond to those business operations.

The Business Auto Coverage Form does not cover anyone who works on a covered auto, but the Garage Coverage Form excludes only persons not associated with the named insured's garage operation.
The Business Auto Coverage Form excludes any person who moves items to or from vehicles. The Garage Coverage Form does not have this limitation.
The Garage Coverage Form does not include customers as insureds if the garage is a dealership. They are covered to the extent of applicable minimum financial responsibility limits if no other coverage applies.

4. The Physical Damage Coverage exclusions that are only in the Garage Coverage Form are:

Autos Leased To Others
False Pretense
Dealership Exclusions
Profits
Unnamed Location 45 Days After Acquisition
Autos Driven More Than 50 Miles Between Points Of Purchase And Distribution

5. Both coverage forms open with a description of covered auto designation symbols. The definitions in both forms are similar but several definitions in the Garage Coverage Form are unique.

Symbol Comparison
Symbol Meaning	CA 00 01–Business Auto	CA 00 05–Garage
Any Auto	1	21
Owned Autos Only	2	22
Owned Private Passenger Autos Only	3	23
Owned Autos Other Than Private Passenger Autos Only	4	24
Owned Autos Subject To No-Fault	5	25
Owned Autos Subject To Compulsory Uninsured Motorists Law	6	26
Specifically Described Autos	7	27
Hired Autos Only	8	28
Non-Owned Autos Only	9	N/A
Non-Owned Autos Used In Your Garage Business	N/A	29
Mobile Equipment Subject To Compulsory Or Financial Responsibility Or Other Motor Vehicle Insurance Law Only	19	N/A
Autos Left With You For Service, Repair, Storage Or Safekeeping	N/A	30
Dealers Autos (Physical Damage Coverages)	N/A	31

COMPARE: CA 00 05–GARAGE COVERAGE FORM 03 10 EDITION TO THE
03 06 EDITION

INTRODUCTION

This is a summary of the changes made in the 03 10 edition of CA 00 05–Garage Coverage Form. Most of the changes reduce coverage.

SECTION II–LIABILITY

A.4.a. Supplementary Payment

This is a reduction in coverage because attorney’s fees or expenses taxed against the insured by the courts are specifically not covered.

B. Exclusions

4. The Employee Indemnification and Employers Liability exclusion is broadened to explain that the time the event occurs has no impact on coverage. It can occur before, during or following employment.

5. The Fellow Employee exclusion is broadened to also exclude coverage for any consequential damage claims by relatives of an injured fellow employee.

SECTION III–GARAGEKEEPERS COVERAGE

A.4. Coverage Extensions

This is a reduction in coverage because attorney’s fees or expenses taxed against the insured by the courts are specifically not covered.

C. Limits of Insurance And Deductibles

This adds a clarification stating that the deductible is applied prior to the limit of insurance cap.

SECTION III–PHYSICAL DAMAGE COVERAGE

B. Exclusions

The last two items of the Excluded Property exclusion have major changes.

2.e. and 2.f . Electronic Equipment And Accessories

The exception for equipment used solely to reproduce sound is eliminated. This is a reduction in coverage for both the equipment and its accessories.

3. Changes to Exclusion 2

This is a new exclusion. It was previously part of Exclusion 2. It details the items excepted from Exclusions 2.c and 2.d. In order for the exception to apply, the item must operate only from the auto’s electrical system and meet any of the following criteria at the time of loss:

Be permanently installed in or on the covered auto
Not be permanently installed but be removable only from a housing unit permanently installed in or on the covered auto
Be an item considered integral to items described in a. or b. above
Be other electrical equipment normal to the operation of the covered auto or that monitors the operating system

7. Other Exclusion

This exclusion is rewritten to apply only if damage is confined to the described causes of loss. It also does not apply when the entire vehicle is stolen. The corresponding exclusion in the previous edition did not use the word confined but it did not apply if any cause of loss occurred first or at the same time. There was no specific reference to the auto being stolen.

C. Limit Of Insurance

A $1,000 sub-limit that applies to the items described as covered under Excluded Property Exclusion 3. Changes To Exclusion 2 is added. This change means that, although coverage might be provided, the total amount of damages paid is limited to $1,000. This could be a significant reduction of coverage.

SECTION VI–DEFINITIONS

The definition of Customer’s Auto changed and is both broadened and restricted. The vehicle is now covered even if the customer does not know that it is in the named insured’s possession. This could be considered a broadening of coverage. However, the purpose of the possession having to be lawful might be considered a restriction of coverage.

COMPARE: CA 00 05–GARAGE COVERAGE FORM 03 10 EDITION TO THE
03 06 EDITION KNOWLEDGE TESTER QUIZ

QUESTIONS

1. Under the Garage Coverage Form, does the insurance company have to defend the insured if a person sues stating that she was denied a job due to her gender?

2. How was the Fellow Employee exclusion changed?

3. What two major changes affect claims for damage to electronic equipment?

4. Why is the change in the definition of customer’s auto both a broadening and a restriction?

ANSWERS

1. The Employee Indemnification And Employers Liability Exclusion excludes all such claims. The 03 10 Edition clarifies that coverage does not apply if the action took place before, during or after hiring.

2. The Fellow Employee exclusion was broadened to exclude consequential injury claims from relatives of an injured fellow employee.

3. The electronic equipment exclusion no longer excepts all equipment that only reproduces sound, although it does cover similar to equipment that receives and transmits data. A $1,000 sub-limit applies to all covered electronic equipment.

4. Under the new definition, the vehicle is now covered even if the customer does not know that it is in the named insured’s possession. This could be considered a broadening of coverage. However, the purpose of the possession having to be lawful might be considered a restriction of coverage.

CA 00 05–GARAGE COVERAGE FORM ANALYSIS (03/06 edition)

Garage operations are unusual because the lines between their general liability and automobile liability exposures blur and overlap in some areas. The Insurance Services Office (ISO) developed CA 00 05–Garage Coverage Form covers both exposures under a single coverage form while eliminating coverage gaps and overlaps. It covers premises liability, products liability, automobile liability, and physical damage to covered autos, as well as garagekeepers coverage for customer's autos. A number of endorsements are available to broaden or restrict coverage.

This analysis is based the 03/06 edition of this coverage form. Changes from the previous edition are in bold print.

SECTION I–COVERED AUTOS

Numerical symbols are used to determine the autos insured and the coverages provided. These symbols are defined in the Description Of Covered Auto Designation Symbols.

The sample Garage Declarations has spaces in which to insert the symbol or symbols next to each of the business auto coverages. The only coverages provided are those having a symbol or symbols indicated and only those autos designated by the symbol or symbols are covered autos for that coverage.

A. Description Of Covered Auto Designation Symbols

21–Any Auto

Note: Section VI–Definitions defines auto as a land motor vehicle, trailer or semitrailer.

22–Owned Autos Only

This symbol means that any auto the named insured owns is covered, including those acquired after the inception date. In addition, any owned or non-owned trailer pulled by an owned vehicle is also covered if this symbol is used with liability coverage.

Note: The definition of trailer includes semitrailers. See Section VI–Definitions.

23–Owned Private Passenger Autos Only

All private passenger type autos that the named insured owns are covered when this symbol is used. This includes any private passenger type vehicle acquired after the inception date.

24–Owned Autos Other Than Private Passenger Autos Only

This symbol indicates that all autos other than private passenger types that the named insured owns are covered, as well as those acquired after the inception date. Similar to Symbol 22 above, the liability coverage provided is extended to any owned or non-owned trailer pulled by this type of owned vehicle.

Example: Paula's Pre-Owned Autos is insured under CA 00 05–Garage Coverage Form. Paula's sells and services autos. A new mechanic takes a one-ton stake truck, visits several junkyards, and purchases some used parts and equipment. By the time he gets to the last one, the truck is already loaded but this is where he needs to pick up an engine block needed that day. The junkyard owner loads the engine block on one of his trailers and attaches it to Paula's truck. As long as it is attached to the truck, it is covered under Paula's Garage Coverage Form.

25–Owned Autos Subject To No-Fault

26–Owned Autos Subject To A Compulsory Uninsured Motorists Law

Note: This symbol does not apply to vehicles licensed or operated in states that allow the named insured to formally reject Uninsured Motorists coverage.

27–Specifically Described Autos

Only autos specifically scheduled and for which a premium charge is made are covered. Similar to Symbol 22 above, the liability coverage provided is extended to any owned or non-owned trailer pulled by this type of owned vehicle.

28–Hired Autos Only

This symbol covers autos the named insured leases, hires, rents or borrows. This symbol has a significant limitation. It does not include leased, hired, rented, or borrowed vehicles owned by an employee, partner, LLC member, or members of any of the preceding groups’ households.

29–Non-Owned Autos Used In Your Garage Business

This symbol only applies to autos the named insured uses in its business that it does not own, lease, hire, rent or borrow. Autos owned by employees, partners in the case of a partnership, members in the case of limited liability companies or members of the preceding group’s households are included. Covered status exists only while those non-owned autos are used in the named insured’s garage business.

Example: Paul recently started his job at The Friendly Garage and was learning the ropes and cheerfully agreed to his boss' request to make a run to the deli for lunch. The boss and eight other employees wrote down their orders, Paul called the order in, and then headed out to pick them up. While driving back, a drink lid popped off and he bent over to readjust it. At that exact moment, the car in front of him stopped and Paul rammed it, setting off a chain reaction that eventually damaged six vehicles. The drivers brought claims against Paul and The Friendly Garage upon learning that Paul was traveling on company business. The owner of Friendly Garage and his insurance company are still discussing whether the lunch run qualifies as part of the garage business.

30–Autos Left With You For Service, Repair, Storage Or Safekeeping

This symbol applies to customer autos, including autos of employees and their household members, left with the named insured for service, repair, storage or safekeeping, and for which a fee for the services provided is charged.

31–Dealers Autos (Physical Damage Coverages)

This symbol applies to any auto and the interests of any loss payees in those autos indicated in Item Seven of the declarations.

Note: In the previous edition, this symbol also included Autos Held For Sale By Non-Dealers Or Trailer Dealers indicated in Item Nine of CA DS 08–Garage Coverage Form–Non-Dealers' And Trailer Dealers' Supplementary Schedule.

Manuscript Symbol

An additional manuscript symbol that is not mentioned in the Garage Coverage Form is available by adding endorsement CA 99 54–Covered Auto Designation Symbol. Symbol 32 is available for the Garage Coverage Form and the autos considered covered must be listed and described on the endorsement.

Example: Jane’s dealership displays the first automobile it ever sold. It is still in working condition but is driven only in parades and commercials for the dealership. Since it is insured on an antique auto policy, it is not to be covered on Jane’s garage coverage form. The insurance company agrees to provide symbol 22 for liability and symbol 31 for physical damage. Tit also agrees to attach CA 99 54–Covered Auto Designation Symbol with symbol 32 and the wording, “Any autos except the 1906 Ford and the interests in those autos described in Item Seven of the Declarations.

B. Owned Autos You Acquire After The Policy Begins

1. If Symbols 21–Any Auto, 22–Owned Autos Only, 23–Owned Private Passenger Autos Only, 24–Owned Autos Other Than Private Passenger Autos Only, 25–Owned Autos Subject To No-Fault, or 26–Owned Autos Subject To A Compulsory Uninsured Motorists Law are used for coverages indicated on the declarations, autos of the type described by such symbols that the named insured acquires during the policy period are also covered.

Example: Lincoln Motors uses symbol 23 and 27 for liability coverages. There is no coverage for a new truck it purchases after the inception date. However, a private passenger vehicle purchased after the inception date is covered.

Example: Lincoln Motors purchased the truck in the previous example to replace another truck. As a result, it is covered for up to 30 days. However, coverage ends after 30 days if the insurance company is not notified of the purchase.

C. Certain Trailers And Temporary Substitute Autos

When liability coverage is provided, several additional categories of vehicles are added as covered vehicles.

1. Utility trailers having a load capacity of 2,000 pounds or less and designed for travel on public roads are covered while being pulled by a covered auto.

2. If the named insured's covered, owned auto is temporarily out of service due for repair or service or due to breakdown, repair, servicing, loss or destruction, a non-owned, temporary substitute for it is covered but only if the named insured uses it with the owner's permission.

Example: Scenario One: All of Greatful Garage's autos are insured under CA 00 05–Garage Coverage Form, with its small fleet of marketing representative cars insured using Symbol 22–Owned Autos. Karl, one of the representatives, must drive to another state on business but doesn't believe his company car can make the trip because it is old and has recently had a few mechanical problems. For these reasons, Karl rents a car for the trip. In this case, Karl's rental is not automatically covered.

Note: Cars temporarily substituting for owned vehicles being repaired, maintained or serviced are covered.

Example: Scenario Two: All of Greatful Garage's autos are insured under CA 00 05–Garage Coverage Form, with its small fleet of marketing representative cars insured using Symbol 22–Owned Autos. Karl, one of the representatives, must drive to another state on business but his company car breaks down shortly after he begins the trip. Karl rents a car to continue the trip. In this case, Karl's rental is automatically covered as a substitute for his regular company car.

SECTION II–LIABILITY COVERAGE

A. Coverage

This coverage form provides two types of liability coverage. The first is similar to commercial general liability coverage and the second is similar to business auto coverage.

1. Garage Operations–Other Than Covered Autos

The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury or property damage to which this coverage applies caused by an accident and resulting from garage operations. This does not include ownership, maintenance or use of covered autos. It also has the right and duty to defend any insured against suits seeking damages covered by this insurance. It decides how to handle that obligation. It has the right to decide what to investigate, whether the claim is valid and whether settling the claim or contesting it is appropriate. However, the company no longer has to provide a defense once an action is resolved by payment of a settlement or a court award that exhausts the limit of insurance that applies. Coverage applies only to bodily injury or property damage caused by an accident that takes place in the coverage territory during the policy period. In addition, coverage does not apply to a known loss. A loss is considered known if either an insured or an insured’s employee with the responsibility and authority to report losses was aware of a loss before the inception date.

Example: Jamie Phillips works for ABC Garaging. He handles customer personal property that is lost or found on the premises. Jamie has known for a few weeks that a large metal waste container has a broken wheel that causes it to tip over without warning. He simply picks it up when it falls over and has not mentioned it to any of the parking attendants or the shift supervisors. An attendant turns a corner while parking an insured’s BMW, the waste container suddenly tips over and it smashes against the side of the car. The impact startles the attendant, causes her to lose control, and the vehicle crashes into Jamie’s office. Chargmore Insurance Company tries to deny coverage when it discovers that Jamie knew about the hazardous container. However, it changes its decision when ABC Garaging's owner informs it that, while it would have been nice if Jamie had mentioned the problem to somebody in authority, his duties did not include responsibility for such matters.

Bodily injury or property damage that takes place during the policy period that was not known to have occurred by any insured or authorized and responsible employee includes any continuation, change or resumption of the injury or damage that takes place after the expiration date.

Bodily injury or property damage is considered to have been known at the time any insured or authorized and responsible employee:

Reported all or part of the injury or damage to the insurance company
Received a written or verbal demand or claim for damages because of the injury or damage
Became aware that injury or damage had occurred or was beginning to occur by any means

2. Garage Operations–Covered Autos

The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury, property damage, and certain pollution costs and expenses to which this coverage applies caused by an accident and resulting from garage operations involving ownership, maintenance or use of covered autos. It only pays covered pollution costs and expenses if there is covered bodily injury or property damage caused by the same accident.

Example: Greystoke Auto Dealers owns a shuttle that transports customers who have left their cars for service. The Greystoke Shuttle strikes an SUV as it exits the parking lot. The SUV is upended, falls over, and its gas tank ruptures and sprays fuel all over the street, sidewalk and the storefront of a neighboring restaurant. The city sues Greystoke for the expense of cleaning up gas residue, and the restaurant sues for the cost of removing gas smells from its awning, tablecloths and furniture. These losses are covered.

Now, let’s change this scenario slightly.

It also has the right and duty to defend any insured against suits seeking damages covered by this insurance. It decides how to handle that obligation. It has the right to decide what to investigate, whether the claim is valid and whether settling the claim or contesting it is appropriate. However, the company no longer has to provide a defense once an action is resolved by a settlement, a court award or exhaustion of the limit of insurance that applies.

Note: The insurance company's defense obligation is identical to that in Garage Operations–Other Than Covered Autos. This liability coverage is similar to that provided in CA 00 01–Business Auto Coverage Form with respect to ownership, maintenance or use of covered autos.

3. Who Is An Insured

a. Insureds for covered autos are:

(1) The named insured

(2) Anyone else who uses a covered auto the named insured owns, hires or borrows and operates it with the insured’s permission except:

The owner or anyone else that the named insured hired or borrowed a covered auto from unless the covered auto is a trailer connected to an owned covered auto

Example: If the named insured rents a car from a rental agency, the rental agency is not considered an insured.

The named insured's employees or members of their households if the employee owns that auto

Example: If the named insured borrows an employee's car to pick a client up at the airport, the employee is not considered an insured.

Anyone using a covered auto while working in the business of selling, servicing or repairing autos, unless it is the named insured's garage operation

Note: The words "parking" and "storing" in the previous edition were removed.

The named insured's customers. However:

If the named insured's customer does not have other insurance, the customer is an insured but only up to the compulsory or financial responsibility limits required by law in the state where the covered auto is principally garaged.
If the named insured's customer has other insurance less than the compulsory or financial responsibility limits required by law in the state where the covered auto is principally garaged, the customer is an insured only for the difference between the limits carried and the mandatory limit.

The named insured's partners, if the named insured is a partnership, or members, if the named insured is a limited liability company, for a covered auto he or she, or a member of his or her household, owns.

(3) Anyone liable for the conduct of an insured indicated above, limited to the extent of that liability

(4) An employee of the named insured while using a covered auto that the named insured does not own, hire or borrow in its business or personal affairs

Example: Jim is the body shop manager for Marshall’s New Motors. Lana Marshall asks Jim to pick up her daughter from the airport. Jim takes his own auto and picks her up but strikes a pedestrian on the way to the Marshall’s home. The injured person sues Jim and Marshall Motors. Both qualify as insureds in this loss.

Note: This coverage was previously provided only by adding CA 99 33—Employees As Insureds.

b. Insureds for garage operations other than covered autos are:

(1) The named insured

Note: When compared to Who Is An Insured in the Commercial General Liability coverage Form, this is a very restrictive definition. Neither the named insured's spouse nor partners are insureds.

2. Coverage Extensions

a. Supplementary Payments

Previous editions stated that the supplementary payments were in addition to the Limit Of Insurance.

Note: The wording was determined to be ambiguous because it was sometimes interpreted to mean that the payments were contingent on activity involving the coverage form's stated policy limits. The intent was merely to inform policyholders that any supplementary payments made did not affect the stated limits. The coverage form now states that such payments do not reduce the limits.

The insurance company pays the following on behalf of the insured:

(1) All expenses the insurance company incurs. This clarifies that the insurance company's expenses do not reduce the limit of insurance.

(3) The cost of bonds needed to release attachments in a suit filed against the insured that the insurance company defends, but only the amount of such bonds within the limit of insurance.

(4) The insurance company pays reasonable expenses if it asks the insured to participate in any investigation or defense. This includes actual loss of earnings up to $250 a day because of time taken off from work.

(5) All costs taxed against the insured in a suit filed against it that the insurance company defends.

Note: This supplementary payment can provide rather extensive benefits over and above the limits of insurance.

(6) Interest on the full amount of any judgment that accrues after it is entered in a suit against the insured that the insurance company defends.

b. Out-Of-State Coverage Extensions

This section provides two important coverage extensions when an insured is away from the state where the auto is licensed or garaged. They essentially make the insurance provided comply with any state financial responsibility law no-fault or other compulsory coverage. The two extensions are:

Example: The Garage Coverage Form's single liability limit is $50,000. This limit complies with the financial responsibility laws of the state where the vehicle is licensed and garaged. However, that limit is inadequate when the auto crosses the state line into the next state. That state's minimum limit requirement is $75,000. This extension automatically increases the limit to $75,000 for the period the covered auto operates in that state without requiring a separate endorsement.

(2) The Garage Coverage Form provides the minimum amounts and types of other coverages required of out-of-state autos by the jurisdiction where the covered auto is being operated. One such coverage is no-fault.

Example: The state where the covered auto is garaged and licensed does not require no-fault coverage, but another state where the covered auto operates does. This extension provides the coverage required by that state during the period the auto operates there.

Note: A statement here clarifies that the insurance company does not pay anyone more than once for the same elements of loss because of these extensions. In other words, they do not duplicate any coverage or allow damages to be collected more than once.

B. Exclusions

The insurance provided by this coverage form does not apply to the following:

1. Expected Or Intended Injury

Any bodily injury or property damage the insured expects or intends to cause is excluded. However, for garage operations other than covered autos, this exclusion does not apply to bodily injury resulting from using reasonable force to protect persons or property.

Note: This exclusion is intended to protect insurance companies from responding to damages or injuries the insured intentionally causes. It is in the public interest to prevent the insurance coverage from being used for gain, to injure competitors, as an instrument of revenge, or to cause any other deliberate harm. There is no ISO endorsement available to buy coverage for intentional acts or to delete this exclusion at the present time.

2. Contractual

Damages for bodily injury or property damage that result from liability the insured assumed in a contract or agreement are excluded with two exceptions. They are excluded if either the contract or agreement is considered an insured contract or if the insured would have been liable without a contract or agreement. There is no ISO endorsement available to buy back or delete this exclusion at the present time.

3. Workers Compensation

Note: This exclusion and the one that follows are intended to prevent double indemnification for injury that should be covered under workers compensation or employers liability policies.

4. Employee Indemnification And Employers Liability

Any bodily injury to the insured's employee or the spouse, child, parent, brother or sister of that employee due to the employment of that employee or while performing duties of the insured’s business operations is excluded. Coverage also does not apply to bodily injury to a person or the spouse, child, parent, brother or sister of that person arising out of any refusal to employ that person, terminating that person's employment, or employment related practices.

This exclusion applies whether the insured is liable as an employer or in any other capacity, or whether the insured is obligated to share damages with or repay someone else who must pay damages because of the injury. This clarification is important because of the widespread use of contractors, subcontractors, independent contractors or leased employees, and much of the uncertainty with respect to who is responsible.

Note: This exclusion has two exceptions. Coverage applies to bodily injury to domestic employees who are not entitled to workers compensation benefits and to liability the insured assumes in an insured contract. Domestic employees are persons who perform household or domestic work primarily for a residence premises.

5. Fellow Employee

There are two ways to modify this exclusion. An employer may delete the fellow employee exclusion for all employees by using CA 20 55–Fellow Employee Coverage. An employer may delete the fellow employee exclusion for specific employees or specific positions using CA 20 56—Fellow Employee Exclusions For Designated Employees/Positions.

6. Care, Custody Or Control

Property damage to or covered pollution cost or expense to property the insured owns, rents, or occupies, property loaned to the insured, property it holds for sale or transports or that is in its care, custody or control is excluded unless such liability was assumed in a sidetrack agreement.

The Garage Coverage Form protects the insured for its negligence and tort liability to others, not to damages or injury to the insured. As such, it reinforces the need for the insured to maintain its premises and properties in good condition and to use reasonable care to prevent damage or injury, including damage to property in its care, custody or control.