Table of Contents Chapter 1: The Business Auto Coverage Form... 1 ISO Rules...1 The Declarations Form...2 Chapter 2: Covered Auto Designations... 5 Coverage Symbols...5 Owned Autos Acquired after Policy Inception...12 Certain Trailers, Mobile Equipment and Temporary Substitute Autos...15 Chapter 3: Liability Coverage... 19 The Insuring Agreement...19 Who Is an Insured...22 Coverage Extensions...24 Exclusions...25 Limit of Insurance...35 Chapter 4: Physical Damage Coverage... 37 The Coverage Agreements...37 Towing...39 Glass Breakage...41 Coverage Extensions...41 Physical Damage Exclusions...43 Limit of Insurance...46 Deductibles...48 Chapter 5: Business Auto Conditions... 51 Loss Conditions...51 General Conditions...55 Common Policy Conditions...59 Chapter 6: Business Auto Definitions... 63 Accident...63 Auto...63 Bodily Injury... 64 Covered Pollution Cost or Expense...65 Diminution in Value... 66 Employee... 66 Insured... 66 ix
Insured Contract...68 Leased Worker...69 Loss...69 Mobile Equipment... 71 Pollutants... 71 Property Damage... 72 Suit...72 Temporary Worker...72 Trailer...73 Chapter 7: Auto Medical Payments Coverage... 75 Coverage...75 Who Is an Insured?...77 Exclusions...79 Limit of Insurance...83 Changes in Conditions...83 Additional Definitions...84 Chapter 8: Endorsements... 87 Limited Mexico Coverage CA 01 21...87 Waiver of Transfer of Rights of Recovery against Others to Us CA 04 44...88 Golf Carts and Low-Speed Vehicles CA 04 45...88 Drive-Away Contractors CA 20 05...89 Driving Schools Nonowned Autos CA 20 06...89 Mobile Equipment CA 20 15...90 Mobile Homes Contents Coverage CA 20 16...91 Professional Services Not Covered CA 20 18...92 Repossessed Autos CA 20 19...92 Snowmobiles CA 20 21...93 Registration Plates Not Issued for a Specific Auto CA 20 27...93 Autos Leased, Hired, Rented or Borrowed with Drivers Physical Damage Coverage CA 20 33...94 Designated Insured CA 20 48...94 Employee Hired Autos CA 20 54...94 Explosives CA 23 01...95 Multipurpose Equipment CA 23 03...95 Rolling Stores CA 23 04...95 Wrong Delivery of Liquid Products CA 23 05...96 Coverage for Injury to Leased Workers CA 23 25...96 Amphibious Vehicles CA 23 97...96 Trailer Interchange Coverage CA 23 98...97 x
Public Transportation Autos CA 24 02...97 Fire, Fire and Theft, Fire, Theft and Windstorm and Limited Specified Causes of Loss Coverages CA 99 14...98 Rental Reimbursement Coverage CA 99 23...98 Stated Amount Insurance CA 99 28....99 Tapes, Records, and Discs Coverage CA 99 30....99 Employees as Insureds CA 99 33...100 Social Service Agencies Volunteers as Insureds CA 99 34...100 Garagekeepers Coverage CA 99 37...101 Exclusion or Excess Coverage Hazards Otherwise Insured CA 99 40...101 Loss Payable Clause CA 99 44...101 Employee as Lessor CA 99 47...102 Pollution Liability Broadened Coverage for Covered Autos CA 99 48...102 Garagekeepers Coverage Customers Sound Receiving Equipment CA 99 59...103 Audio, Visual and Data Electronic Equipment Coverage Added Limits CA 99 60...103 Loss Payable Clause Audio, Visual and Data Electronic Equipment Coverage Added Limits CA 99 61...104 Uninsured Motorists Coverage Endorsements...104 Chapter 9: The Auto Dealers Coverage Form... 105 Introduction...105 Auto Dealers Declarations...106 Chapter 10: Covered Auto Designations... 111 Coverage Symbols...111 Symbol 21...111 Symbol 22...112 Symbol 23...112 Symbol 24...113 Symbol 25...113 Symbol 26...114 Symbol 27...114 Symbol 28...114 Symbol 29...115 Symbol 30...115 Symbol 31...116 Owned Autos Acquired after Policy Inception...116 Certain Trailers and Temporary Substitute Autos...117 xi
Chapter 11: Covered Autos Liability Coverage... 119 Covered Autos Liability Coverage...119 Persons Insured for Covered Autos...121 Coverage Extensions...122 Exclusions...123 Care, Custody or Control of Property Exclusion... 124 Pollution Exclusion...125 Leased Autos Exclusion...125 Defective Products Exclusion...126 Work You Performed Exclusion...127 Impaired Property Exclusion...128 Products Recall Exclusion...128 Acts, Errors or Omissions Exclusion... 129 Limit of Insurance Covered Autos Liability...129 Chapter 12: Garagekeepers Coverage... 131 Garagekeepers Declarations Covered Autos...131 Insuring Agreement Causes of Loss...133 Defense...134 Insureds...134 Coverage Extensions...135 Exclusions...136 Limit of Insurance and Deductibles...137 Coverage Options...138 Chapter 13: Physical Damage Coverage... 141 Symbols...141 Coverage...142 Coverage Extension Loss of Use Expenses...143 Exclusions...144 Limits of Insurance...148 Reporting Requirements...150 Nonreporting Provision...152 Deductible...155 Chapter 14: General Liability Coverages... 157 Bodily Injury and Property Damage Coverages...157 Bodily Injury and Property Damage Exclusions...159 Contractual Liability...159 Employee Indemnification and Employers Liability...161 Damage to Property...161 xii
Pollution and Cleanup Costs...162 Aircraft, Auto, or Watercraft... 162 Defective Products...163 Work You Performed...165 Products Recall...166 Liquor Liability...167 Personal and Advertising Injury...168 Locations and Operations Medical Payments...169 Who Is an Insured Supplementary Payments Limits of Insurance...170 Chapter 15: Acts, Errors, or Omissions Liability Coverages... 173 CA 00 25 Section III Coverage...173 Exclusions...174 Who Is an Insured...178 Other Provisions...179 Court Cases...180 Intentional Act Exclusion Precludes Coverage...180 Title E&O Liability Coverage Falls Short of the Mark...183 Selling Too Many Autos to One Person...184 Conclusion...185 Chapter 16: Auto Dealers Coverage Form Conditions... 187 Loss Conditions...187 Appraisal for Physical Damage Loss...187 Duties in the Event of Accident, Claim, Offense, Suit, Loss or Acts, Errors, or Omissions... 188 Legal Action against Us...190 Loss Payment Physical Damage Coverages...191 Transfer of Rights of Recovery against Others to Us...191 General Conditions...192 Bankruptcy...192 Concealment, Misrepresentation, or Fraud... 192 Liberalization...193 No Benefit to Bailee Physical Damage Coverages...193 Other Insurance...193 Premium Audit...195 Policy Period, Coverage Territory... 195 Two or More Coverage Forms or Policies Issued by Us...198 Chapter 17: Definitions... 199 Words and Terms Defined...199 xiii
Chapter 18: Endorsements to the Auto Dealers Coverage Forms... 215 500 Dollar Deductible for Work You Performed Does Not Apply CA 03 03...215 Additional Insured General Liability Coverages Lessor of Leased Equipment CA 20 47...215 Additional Insured General Liability Coverages Grantor of Franchise CA 20 49...216 Broad Form Products Coverage CA 25 01...216 Dealers Driveway Collision Coverage CA 25 02...216 False Pretense Coverage CA 25 03...217 Fire, Fire and Theft and Limited Specified Causes of Loss Coverage for Dealers CA 25 04...217 Locations and Operations Not Covered CA 25 07...217 Additional Insured General Liability Coverages Owners of Leased or Rented Land or Premises CA 25 09...217 Named Driver Collision Coverage CA 25 11...218 Full Covered Autos Liability Limit for Customers CA 25 15...218 Auto Dealers Coverage Form General Liability Coverages Total Pollution Exclusion CA 25 16...218 Abuse or Molestation Exclusion for General Liability Coverages CA 25 28...218 Additional Insured General Liability Coverages Concessionaires Trading under Your Name CA 25 29...219 Fungi or Bacteria Exclusion General Liability Coverages CA 25 37...219 Limited Fungi or Bacteria Coverage for General Liability Coverage CA 25 38...219 Silica or Silica Related Dust Exclusion for General Liability Coverages CA 25 39...220 Employee Benefits Liability Coverage CA 25 48...220 Limited Product Withdrawal Expense Endorsement CA 25 49...220 Exclusion Damage to Rented Premises CA 25 50...220 Exclusion Designated Products CA 25 51...220 Exclusion Locations and Operations Medical Payments CA 25 52...221 Exclusion Personal and Advertising Injury Liability Coverage CA 25 54...221 Exclusion Products and Work You Performed CA 25 55....... 221 Exclusion Designated Work You Performed CA 25 56...221 Amendment of Limits of Insurance General Liability Coverages CA 25 58...221 xiv
Designated Location(s) General Liability Aggregate Limit for Certain General Liability Coverages CA 25 59...222 Changes to the Bankruptcy or Insolvency Exclusion for Acts, Errors or Omissions Liability Coverages CA 25 62...222 Exclusion Acts, Errors or Omissions Liability Coverages CA 25 63...222 Exclusion of Specified Acts, Errors or Omissions Liability Coverages CA 25 64...222 Customer Complaint Legal Defense Coverage CA 25 66...222 Extended Reporting Period Endorsement for Employee Benefits Liability Coverage CA 25 67...223 Pollution Liability Broadened Coverage for Covered Autos Auto Dealers Coverage Form CA 99 55...223 Chapter 19: Issues in Commercial Auto Insurance... 225 Any Auto...225 Coverage Suspension...226 Use of an Auto...228 Care, Custody, or Control... 228 Betterment...230 Collision.............................................. 231 Auto Dealers Errors or Omissions Coverage...232 Negligent Maintenance of Autos Leading to Injuries...234 Nonownership Coverage...236 Hired or Borrowed Autos Coverage...236 Nonownership Liability Insurance...240 Who Is an Insured for Nonownership Coverage?... 242 Nonownership Property Damage Coverage...242 Drive Other Car Coverage...243 Drive Other Car Coverage Broadened Coverage for Named Individuals CA 99 10...244 Individual Named Insured CA 99 17...246 Auto Leasing & Rental Coverage... 248 Lessor Additional Insured and Loss Payee CA 20 01...248 Contingent Liability Coverage CA 20 09...249 Conversion, Embezzlement, or Secretion Coverage CA 20 10... 250 Excluding Autos under Lease CA 20 11...252 Rent-It-There/Leave-It Here Autos CA 20 12................. 252 Second Level Coverage CA 20 14...253 Autos Leased with Drivers Physical Damage Coverage CA 20 33...253 xv
Auto Loan/Lease Gap Coverage CA 20 71...254 Hired Autos Specified as Covered Auto You Own CA 99 16... 254 Rental Reimbursement Coverage CA 99 23...254 Employee as Lessor CA 99 47...255 False Pretense Insurance (Trick and Device Exclusion)...255 Appendix A: Coverage Forms...260 Appendix B: Declarations...300 Appendix C: BAP Endorsements...341 Appendix D: Auto Dealers Endorsements...359 Appendix E: Commercial Auto Coverage Checklist...370 xvi