What Are Commercial Auto Insurance Endorsements?
What Are Commercial Auto Insurance Endorsements?. A commercial auto insurance endorsement can either add, remove or exclude certain coverages. It's a form that becomes part of your insurance policy, altering your policy coverage.
For example, any changes made to the basic policy the commercial insurance carrier files with the state regulators is done by using endorsements. Common changes might include: Changing the business address, adding more coverage, excluding coverage for specific exposures. Commercial Auto Endorsements allow you to make these changes - without having to buy another policy or take the chance of having risks go uninsured.
So what are commercial auto insurance endorsements? Read on to discover the many types of endorsements available for commercial auto insurance policies.
What are commercial auto insurance endorsements? Endorsements modify the basic Business Auto Policy to either add, delete, or exclude certain types of coverage.
BUSINESS AUTO ENDORSEMENTS NUMBERING
- What Are CA 00 - Coverage Forms?
- What Are CA 01 - Amendatory Endorsements?
- What Are CA 02 - Cancellation And Suspension Endorsements?
- What Are CA 03 - Deductible Endorsements?
- What Are CA 04 - Coverage Endorsements?
- What Are CA 20 - Special Type Endorsements?
- What Are CA 21 - Uninsured Motorists Endorsements?
- What Are CA 22 - No-Fault Endorsements?
- What Are CA 23 - Commercial Auto Endorsements?
- What Are CA 24 - Public Transportation Endorsements?
- What Are CA 25 - Auto Dealers Endorsements?
- What Are CA 26 - Single Interest Endorsements?
- What Are CA 99 - Common Coverages And Rating Procedures Endorsements?
- What Are IL 00-12 - Interline Endorsements?
So what are commercial auto insurance endorsements?. They are arranged by form number and title; the list includes a brief explanation of the use for each form. This section does not include any state specific endorsements, changes or amendments or endorsements that apply only to garage coverages.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||Auto Dealers Endorsements|
|CA 26||Single Interest Endorsements|
|CA 99||Common Coverages And Rating Procedures Endorsements|
|IL 00-12||Interline Endorsements|
What Are CA 00 - Coverage Forms?
The CA 00 - Coverage Forms are as follows:
CA 00 01-Business Auto Coverage Form
Almost every commercial venture has an automobile liability and physical damage exposure. The Insurance Services Office (ISO) provides three different approaches to covering those exposures. The CA 00 01-Business Auto Coverage Form can be used by any type of commercial entity to cover its owned and non-owned exposures. The Auto Dealers Coverage Form and the Motor Carrier Coverage Forms are available to auto dealer and motor carrier business entities.
CA 00 20-Motor Carrier Coverage Form
CA 00 20-Motor Carrier Coverage Form is designed for the motor carrier industry and can be used by any person or organization that is transporting anything for commercial purposes. The transporting may be for others, but it is not a requirement. With the elimination of CA 00 12-Truckers Coverage Form, this is the only ISO auto form specifically designed for the trucking industry. However, it is important to remember that motor carriers and trucking operations can also be written using CA 00 01-Business Auto Coverage Form.
CA 00 25-Auto Dealers Coverage Form
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 25-Auto Dealers 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 customers' autos. A number of endorsements are available to broaden or restrict coverage.
What Are CA 01 - Amendatory Endorsements?
The CA 01 - Amendatory Endorsements are as follows:
A 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.
What Are CA 02 - Cancellation And Suspension Endorsements?
The CA 02 - Cancellation And Suspension Endorsements are as follows:
CA 02 38-Reinstatement of Insurance
This endorsement is used to reinstate previously suspended coverages and/or vehicles. A schedule is part of the endorsement. Accurate completion of the schedule is very important because only the scheduled autos are reinstated, and the others remain suspended.
CA 02 40-Suspension of Insurance
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 by attaching CA 02 38-Reinstatement of Insurance on which a date is provided.
What Are CA 03 - Deductible Endorsements?
The CA 03 - Deductible Endorsements are as follows:
CA 03 01-Deductible Liability Coverage
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.
CA 03 02-Deductible Liability Coverage
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 does require the insurance company to pay the deductible and be reimbursed by the named insured. Under the CA 03 01, the insurance company may pay the deductible and then be reimbursed.
What Are CA 04 - Coverage Endorsements?
The CA 04 - Coverage Endorsements are as follows:
CA 04 42-Exclusion of Federal Employees Using Autos in Government Business
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)
No organization or person on the endorsement schedule can be subrogated against as long as a contract was signed waiving rights of recovery before a loss in which those rights could have been recovered occurred.
CA 04 45-Golf Carts and Low-Speed Vehicles
Liability for damage by golf carts and similar vehicles has traditionally been insured under Commercial General Liability (CGL) coverage. However, when these vehicles are used off premises and on public roads, they become more like automobiles and may have to be registered in certain states. Doing so eliminates coverage under the CGL. This endorsement allows such vehicles to be scheduled on auto coverage forms.
CA 04 49-Primary and Noncontributory - Other Insurance Condition
When this endorsement is attached, the insurance company agrees to consider the policy to which it is attached to be primary and will not seek contribution from other insurance that is available to an insured who is the named insured on that other insurance. This agreement applies only if the named insured under this policy is contractually bound to that other insured to not seek contribution and for its policy to be primary.
What Are CA 20 - Special Type Endorsements?
The CA 20 - Special Type Endorsements are as follows:
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. In this latest edition, the countersignature area of the form was eliminated.
CA 20 02-Audio, Visual and Data Electronic Equipment Coverage-Fire, Police and Emergency Vehicles
This endorsement deletes the exclusion relating to Audio, Visual and Data Electronic Equipment Physical Damage coverage. It applies only to equipment installed in an auto owned by a police or fire department, a political entity or its agencies, or in emergency vehicles owned by a volunteer fire department, ambulance corps, or volunteer rescue squad. It also eliminates the $1,000 electronic equipment sub-limit under limits of insurance.
CA 20 05-Drive-Away Contractors
Non-owned autos are considered owned autos when driven between a distribution point and its destination but only for coverages for which a premium appears on the endorsement schedule and only when a registration plate also appearing on the endorsement schedule is attached to the vehicle. The liability premium charge is based on the number of registration plates. The physical damage charge is based on gross receipts.
CA 20 06-Driving Schools-Non-Owned Autos
This endorsement covers liability and/or auto medical payments for non-owned autos used for new driver instruction. The definition of insured is amended to extend to any driving instructor and student driver participating in a lesson. Coverage is triggered by a premium entry in the appropriate space(s) on the endorsement schedule, based on the number of driving instructors, the number of owned autos used for driving training, and the coverages selected.
CA 20 07-Emergency Services-Volunteer Firefighters and Workers Injuries Limited Exclusion
This endorsement can be used in place of CA 20 30-Emergency Services-Volunteer Firefighters and Workers Injuries Excluded. It provides fellow volunteer coverage but does not provide full coverage.
CA 20 08-Farm Tractors and Farm Tractors Equipment
This endorsement is mandatory when farm equipment is insured under the Business Auto Coverage Form. It excludes physical damage to non-self-propelled equipment that must be transported or powered by a covered auto. CA 20 15-Mobile Equipment provides physical damage coverage on this equipment.
CA 20 09-Leasing or Rental Concerns-Contingent Coverage
This endorsement is available only to concerns that lease autos to others for more than six months. It provides liability and mandatory no-fault coverages as excess over a lessee's required coverages.
CA 20 10-Leasing Or Rental Concerns-Conversion, Embezzlement or Secretion Coverage
This endorsement excludes conversion, embezzlement and secretion coverage under Comprehensive and Specified Causes of Loss coverages caused by any renter, lessee or under a bailment lease, purchase agreement, mortgage, conditional sale or similar encumbrance. This endorsement is also used to buy back this coverage.
CA 20 11-Leasing Or Rental Concerns-Exclusion of Certain Leased Autos
This endorsement excludes liability and no-fault coverage for leased autos if due to an act or omission of the lessee, its employees or agents, or anyone operating the leased auto with its permission. However, covered autos liability coverage for the named insured or its employees' acts or omissions is unaffected.
CA 20 12-Leasing Or Rental Concerns-Rent-It-There/Leave-It-Here Autos
This endorsement excludes covered autos liability coverage for owners or renters of rent-it-there/leave-it-here vehicles that the named insured does not own.
CA 20 13-Leasing Or Rental Concerns-Schedule Of Limits for Owned Autos
This endorsement allows the named insured to have one set of liability limits on autos in cases where lessees or renters are required to provide primary coverage and another set on autos where they are not required to do so.
CA 20 14-Leasing Or Rental Concerns-Second Level Coverage
The limit of insurance on the endorsement schedule replaces the limit of insurance elsewhere in the coverage form or in the rental agreement requiring primary coverage. The first part of the endorsement clearly benefits the named insured and not the lessee or renter. However, the second part of it is less clear as to who benefits. In addition, the endorsement is not clear as to whether the limits are for liability or physical damage coverage.
CA 20 15-Mobile Equipment
This endorsement insures scheduled mobile equipment for the liability and physical damage coverages on the endorsement schedule.
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 18-Professional Services Not Covered
This endorsement excludes liability resulting from rendering or failing to render professional services. It should be considered when automobiles are used as part of a professional service such as funeral directors, paramedics, and ambulances.
CA 20 19-Repossessed Autos
This endorsement provides the liability and physical damage coverages on the endorsement schedule on autos the named insured repossesses. Coverage begins when repossession ensues and continues while the vehicle is at the location(s) on the endorsement schedule and while pending delivery.
CA 20 21-Snowmobiles
This endorsement is used for providing covered autos liability coverage 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: CA 99 28-Stated Amount Insurance should be used to provide physical damage coverage.
CA 20 27-Registration Plates Not Issued for a Specific Auto
This endorsement provides the covered autos 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 30-Emergency Services-Volunteer Firefighters and Workers Injuries Excluded
This endorsement excludes bodily injury to the insured's volunteer firefighters, fellow volunteer firefighters and other volunteer workers.
Note: CA 20 07-Emergency Services-Fellow Volunteer Firefighters and Workers Injuries Limited Exclusion can be used to provide coverage for fellow volunteers in place of this endorsement.
CA 20 33-Autos Leased, Hired, Rented or Borrowed with Drivers-Physical Damage Coverage
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.
CA 20 48-Designated Insured For Covered Autos Liability Coverage
This endorsement adds the person or organization on the endorsement schedule as an insured for covered autos liability coverage to the extent that it qualifies as such under Who Is an Insured.
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 his or her 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.
CA 20 78-Physical Damage Coverage-Autos Held for Sale by Non-Dealers
This endorsement covers physical damage to vehicles held for sale by parties other than dealers. Coverages selected, locations and deductibles must appear on the endorsement schedule along with other information.
What Are CA 21 - Uninsured Motorists Endorsements?
The CA 21 - Uninsured Motorists Endorsements are as follows:
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.
CA 21 51-Split Underinsured Motorists Coverage Limits
Introduced in the 10 13 edition, this endorsement revises the limit of insurance section to provide separate underinsured motorists coverage limits for bodily injury per person and bodily injury per accident.
What Are CA 22 - No-Fault Endorsements?
The CA 22 - No-Fault Endorsements? are as follows:
What Are CA 23 - Commercial Auto Endorsements?
The CA 23 - Commercial Auto Endorsements are as follows:
CA 23 01-Explosives
This endorsement excludes bodily injury or property damage caused by detonation of explosives the named insured made, sold, or transported.
CA 23 03-Multi-Purpose Equipment
This endorsement amends covered autos liability coverage to reflect that the vehicles on the endorsement schedule are mobile equipment and not autos. A corresponding endorsement should be added to the Commercial General Liability Coverage Form to avoid coverage gaps when this endorsement is used.
CA 23 04-Rolling Stores
With respect to autos that are rolling stores, this endorsement excludes bodily injury or property damage resulting from any aspect of any product the insured makes, sells or distributes that occurs after it relinquishes possession of it.
CA 23 05-Wrong Delivery of Liquid Products
This endorsement excludes bodily injury or property damage that results from delivering one liquid instead of another, delivering any liquid into the wrong receptacle or to the wrong address that occurs after delivery is complete, even if other action is required because of the incorrect delivery.
CA 23 08-Motor Carriers-Excess Coverage for The Named Insured and Named Lessors for Leased Autos
This endorsement provides excess coverage to the named insured motor carrier for the vehicle it leases from the scheduled lessor. It is valid only when the vehicle is used under operating rights issued by a public authority.
CA 23 09-Motor Carriers-Insurance for Non-Trucking Use
n order to understand this endorsement, a few terms must be defined:
- Bobtailing means driving only the tractor (motorized portion) of a tractor/trailer combination vehicle with no trailer attached.
- Bobtail coverage is auto liability coverage that insures against losses involving tractors that operate without a trailer. This usually takes place after a trailer is delivered or when the operator is traveling to pick up a trailer.
- Deadheading is driving a tractor-trailer unit without having freight in the cargo area.
- Deadheading coverage is auto liability insurance coverage for exposures of operating a tractor/trailer combination vehicle with an empty trailer.
The insurance coverage provided by the trucking/motor carrier business ends once the independent trucker completes the haul. Bobtailing and deadheading are times when independent truckers operate outside the trucking/motor carrier business' insurance coverage and could be uninsured.
CA 23 12-Motor Carriers-Named Lessee as Insured
This endorsement includes the lessee on the endorsement schedule as an insured for use of an auto the named insured owns or hires on a primary basis.
CA 23 17-Truckers-Uniform Intermodal Interchange Uniform Endorsement-Form UIIE-1
This endorsement covers the liability for third persons or their property the named insured assumes as a subscribing carrier under the Uniform Intermodal Interchange and Facilities Access Agreement and subsequent amendments. A single limit of insurance must appear on the endorsement schedule for both bodily injury and property damage.
CA 23 24-Agricultural Produce Trailers-Seasonal
This endorsement covers trailers with a load capacity exceeding 2,000 pounds that are specifically used to haul agricultural produce. It does not apply to trailers used to transport livestock. A description of the trailers, the specific produce hauled, and the dates of the seasonal period must be on the endorsement schedule.
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 30-Motor Carrier Endorsement
Introduced in the 10 13 edition, this endorsement modifies the Business Auto Coverage form to also protect the named entity's trucking and related activities.
CA 23 44-Public or Livery Passenger Conveyance Exclusion
This restrictive endorsement excludes all coverage when the driver of the vehicle is logged into a transportation network.
CA 23 45-Public or Livery Passenger Conveyance and On-Demand Delivery Services Exclusion
This restrictive endorsement excludes all coverage when the driver of the vehicle is logged into a transportation network and/or delivery network platform.
CA 23 84-Exclusion of Terrorism
CA 23 85-Exclusion of Terrorism Involving Nuclear, Biological or Chemical Terrorism
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
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.
CA 23 98-Trailer Interchange Coverage
This is the same trailer interchange coverage contained in Section III of CA 00 20-Motor Carrier Coverage Form. It is available for use only with CA 00 01-Business Auto Coverage Form.
What Are CA 24 - Public Transportation Endorsements?
The CA 24 - Public Transportation Endorsements are as follows:
CA 24 01-Transportation of Seasonal or Migrant Agricultural Workers
This endorsement provides coverage as required by the Migrant and Seasonal Agricultural Worker Protection Act, 29 U.S.C.A. Section 1801 and includes an agreement to notify the Office of Administrator of Wage and Hour Division, Employment Standards Administration of the U.S. Department of Labor 30 days prior to cancellation.
CA 24 02-Public Transportation Autos
This endorsement is added to policies covering public transportation autos to indicate that the care, custody, or control exclusion does not apply to property of passengers carried in a covered auto.
What Are CA 25 - Auto Dealers Endorsements?
The CA 25 - Auto Dealers Endorsements are as follows:
CA 25 01-Broad Form Products Coverage
This endorsement deletes the defective products exclusion in the Garage Coverage Form. Property damage coverage to the named insured's products that is due to a product defect is subject to a $500 any on accident deductible.
CA 25 02-Dealers Driveaway Collision Coverage
This endorsement eliminates the 50 road miles limitation for collision losses that occur starting from the purchase or distribution point to the destination for auto dealerships, subject to certain additional reporting requirements.
CA 25 03-False Pretense Coverage
This endorsement deletes the False Pretense Exclusion in the Auto Dealers Coverage Form and provides coverage for certain tricks and schemes that cause the named insured to part with an owned auto. The $25,000 limit can be increased.
CA 25 04-Fire, Fire and Theft and Limited Specified Causes of Loss Coverage for Dealers
This endorsement is used to provide a very limited type of physical damage coverage. It can be used by dealers or others such as automobile manufacturers or financial institutions. The cause(s) of loss, parties, and interests covered, limits, deductibles and the types of vehicles covered must be selected in the spaces provided.
CA 25 07-Locations and Operations Not Covered
This endorsement excludes locations or operations described on the endorsement schedule from all coverage provided by the Auto Dealers Coverage Form.
CA 25 09-Additional Insured-Owners of Leased or Rented Land or Premises
This endorsement adds the listed owner of any leased or rented premises or land described on the endorsement schedule as an additional insured.
CA 25 11-Named Driver Collision Coverage
This endorsement changes the collision coverage to apply only when a driver listed on the endorsement schedule is driving an owned vehicle. Coverage is limited to distances of no more than 50 miles between pickup and destination and coverage is subject to the scheduled deductible.
CA 25 15-Full Covered Autos Liability Limit For Customers
This endorsement extends the applicable Auto Dealers policy's full covered autos liability limits to apply to customers by granting them insured status while operating covered autos.
CA 25 16-Auto Dealers Coverage Form-Total Pollution Exclusion
This endorsement completely excludes pollution under the Section II-General Liability Coverages of the Auto Dealers Coverage Form.
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 the 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 the 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
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 excluded.
CA 25 28-Abuse or Molestation Exclusion for General Liability Coverages
This endorsement, under the Auto Dealers Coverage Form's Section II-General Liability, excludes bodily injury, property damage, and personal injury and advertising injury arising from any incidents of abuse or molestation, committed by an insured or by any person for whom the insured is responsible. This endorsement also excludes allegations of negligent hire, supervision, reporting, investigation, or retention of that person or insured.
CA 25 29-Additional Insured-General Liability Coverages-Concessionaires Trading Under Your Name
This endorsement adds any concessionaire on the endorsement schedule as an additional insured but only with respect to its liability as a concessionaire that trades under the named insured's name.
CA 25 30-Additional Insured-Controlling Interest
This endorsement adds the party on the endorsement schedule as an additional insured. This is only for liability that arises out of its financial control of the named insured or for premises it owns, maintains, or controls that the named insured leases or occupies.
CA 25 31-Additional Insured-Grantor of Licenses-Automatic Status When Required by Licensor
This endorsement provides automatic additional insured status to any party that grants a license to the named insured. However, this is only when there is a contractual requirement for that party to be an additional insured on the named insured's coverage form. It is also only with respect to its liability because it granted a license to the named insured.
CA 25 32-Additional Insured-Grantor of Licenses
This endorsement adds the party on the endorsement schedule as an additional insured. However, this is only with respect to its liability because it granted a license to the named insured.
CA 25 36-Auto Dealers Coverage Form--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-General Liability Coverages
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.
CA 25 38-Limited Fungi or Bacteria Coverage for General Liability Coverages
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.
CA 25 39-Silica or Silica-Related Dust Exclusion for General Liability Coverages
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.
CA 25 45-Additional Insured-Lessor of Leased Equipment-Automatic Status When Required In Lease Agreement with You
This endorsement adds the party on the endorsement schedule as an additional insured. However, this is only for losses caused by the named insured's maintenance, operation, or use of equipment it leases. The endorsement's coverage ends with the termination of the applicable lease.
CA 25 46-Additional Insured-Co-Owner of Insured Premises
This endorsement adds the party on the endorsement schedule as an additional insured. However, this is only for its liability as a co-owner of the premises on the endorsement schedule.
CA 25 47-Limited Contractual Liability Coverage for Personal and Advertising Injury
This endorsement replaces the Contractual Liability exclusion under Personal and Advertising Injury Liability for the contract(s) listed on the endorsement schedule. The change is that contractual liability coverage is provided for the scheduled contract(s) or agreement(s) for the personal and advertising injury offenses that arise from false arrest, detention, or imprisonment.
CA 25 48-Employee Benefits Liability Coverage
This endorsement covers losses due to acts, errors, or omissions in the administering of the named insured's employee benefits program. Coverage applies on a claims-made basis. The limit of insurance that applies to each employee, the aggregate limit, the retained limit, retroactive date, and premium charged must all be entered on the endorsement schedule.
CA 25 49-Limited Product Withdrawal Expense Endorsement
This endorsement reimburses the named insured for its product withdrawal expenses. It does not provide any liability coverage or coverage for the cost or expense to defend claims or suits. It is subject to the aggregate limit, deductible amount, participation percentage for each product withdrawal, and cut-off date on the endorsement schedule.
CA 25 50-Exclusion-Damage to Rented Premises
This endorsement excludes coverage for damage to any premises that is rented to the named insured and removes the reference to Damage to Premises Rented to You limit from the Declarations.
CA 25 51 Exclusion-Designated Products
This endorsement excludes bodily injury or property damage for off premises damage that arises from any of the products listed on the endorsement schedule.
CA 21 52-Exclusion-Locations and Operations-Medical Payments
This endorsement excludes all Medical Payments coverage. It adds first aid expenses to Supplementary Payments to encourage an insured to respond immediately to any incident in order to care for the injured party.
CA 25 53-Exclusion of Newly Acquired or Formed Auto Dealership
This endorsement excludes newly acquired dealerships as insureds.
CA 25 54-Exclusion-Personal and Advertising Injury
This endorsement deletes all coverage for Personal and Advertising Injury Liability.
CA 25 55-Exclusion-Products and Work You Performed
This endorsement excludes bodily injury or property damage for off premises damage that arises from any of the named insured's products or work the named insured performed.
CA 25 56-Exclusion-Designated Work You Performed
This endorsement excludes bodily injury or property damage for off premises damage that arises from any of the work the named insured performed that is listed on the endorsement schedule.
CA 25 57-Communicable Disease Exclusion
This endorsement excludes losses due to alleged or actual transmission of communicable diseases.
CA 25 58-Amendment of Limits of Insurance-General Liability Coverages
This endorsement is used when limits are changed during the policy term in order to clearly communicate the general liability limits that are available at a particular time.
CA 25 59-Designated Location(s) General Liability Aggregate Limit For Certain General Liability Coverages
This endorsement amends the General Liability Aggregate Limit to apply separately to each location on the endorsement schedule.
CA 25 60-Worldwide General Liability Coverages
This endorsement replaces the definition of Coverage Territory with a broadened definition that includes any place in the world except countries or jurisdictions subject to United States of America economic or trade sanctions or embargoes. It addresses defending and handling suits and additional provisions to the Other Insurance condition that the broadened territory affects.
CA 25 61-Expanded Coverage Territory for General Liability Coverages-Additional Scheduled Countries
This endorsement replaces the definition of Coverage Territory with a broadened definition that includes the standard territory plus any country on the endorsement schedule. It addresses defending and handling suits and additional provisions to the Other Insurance condition that the broadened territory affects.
CA 25 62-Changes to The Bankruptcy or insolvency Exclusion for Acts, Errors or Omissions Liability Coverages
This endorsement replaces the Acts, Errors or Omissions Liability Bankruptcy or Insolvency exclusion by substituting the exception that the entity has Best's B+ rating at the time of placement for the scheduled minimum credit rating from the credit bureau entered in the endorsement schedule.
CA 25 63-Exclusion-Acts, Errors or Omissions Liability Coverages
This endorsement removes all Section III- Acts, Errors, or Omissions Liability coverage.
CA 25 64-Exclusion of Specified Acts, Errors or Omissions Liability Coverages
This endorsement excludes only the Section III-Acts, Errors or Omissions Liability coverages selected in the endorsement's schedule.
CA 25 65-Total Bankruptcy or Insolvency Exclusion for Acts, Errors or Omissions Liability Coverages
This endorsement replaces the Auto Dealer Coverage Form's Bankruptcy or Insolvency exclusion with one that eliminates all exceptions.
CA 25 66-Customer Complaint Legal Defense Coverage
This endorsement adds separate coverage for the expenses of defending lawsuits brought by auto dealer operation customers. It's provided on a claims-made basis and applies only to complaints related to losses covered by the Auto Dealer Coverage form with several exceptions found in the endorsement's exclusions section. It has its own "Who Is an Insured" section and adds additional complaint-related conditions. Finally, the form modifies the definition of sue and adds definitions for "customer complaint" and "defense expenses". The form includes a schedule to specify per complaint and per incident limit and a complaint aggregate limit.
CA 25 67-Extended Reporting Period Endorsement for Employee Benefits Liability Coverage
This endorsement modifies CA 25 48-Employee Benefits Liability Coverage. It is used when the extended reporting period that is part of the claims-made Employee Benefits Liability coverage is purchased. It establishes a new aggregate limit and it cannot be canceled when the premium is paid.
What Are CA 26 - Single Interest Endorsements?
The CA 26 - Single Interest Endorsements are as follows:
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. Coverage is excluded when driver of vehicle is logged into a transportation network.
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. Coverage is excluded when driver of vehicle is logged into a transportation network.
CA 26 04-Amendment of Single Interest Policy Provisions - Public or Livery Passenger Conveyance and On-Demand Delivery Services Exclusion
This restrictive 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 exclude coverage when the driver of the vehicle is logged into a delivery network platform.
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.
What Are CA 99 - Common Coverages And Rating Procedures Endorsements?
The CA 99 - Common Coverages And Rating Procedures Endorsements are as follows:
CA 99 03-Auto Medical Payments Coverage
The Business Auto, Auto Dealer, and Motor Carrier Coverage Forms do not contain automatic coverage for auto medical payments. If the coverage is desired, it is provided by attaching CA 99 03-Auto Medical Payments Coverage to the policy.
Auto Medical Payments Coverage is designed to cover reasonable and necessary medical and funeral expenses for an injured person who is considered an insured. It is important to remember that this coverage is not for the injured individuals that are in another vehicle. Coverage applies only to individuals who are considered insureds
CA 99 10-Drive Other Car Coverage-Broadened Coverage for Named Individuals
A coverage concern exists when a family's only available vehicle is supplied or owned by a business. Commercial auto coverage is intended for vehicles used commercially, not personally. In such cases, there's a need to fill the gap between personal and commercial coverage by providing coverage equal to what is offered by a personal auto policy. There are a variety of methods that can be used to address this gap but one of the simplest ways is to attach CA 99 10-Drive Other Car Coverage-Broadened Coverage for Named Individuals.
CA 99 13-Fiduciary Liability of Banks
This endorsement applies to banks that assume fiduciary responsibilities for others. It excludes coverage for events that occurred before the named insured assumed those fiduciary responsibilities, amends the definition of Who Is an Insured and slightly changes the Transfer of Rights of Recovery against Other to Us condition.
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 15-Governmental Bodies Amendatory Endorsement
This endorsement removes vehicles designed for use on public roads that are used solely on public roads owned by the governmental body from the definition of mobile equipment definition and treats them as autos.
Note: Use of this endorsement should be coordinated with Commercial General Liability coverage to prevent either duplicate coverage or gaps in coverage.
CA 99 16-Hired Autos Specified As Covered Autos You Own
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.
CA 99 17-Individual Named Insured
Individual business owners frequently find it difficult to distinguish between personal and business assets. This is especially true when business operations are conducted from a residence. The use of a separate building or office space exclusively for business operations often provides clarity of business and personal property. On the other hand, automobiles represent a major asset of a business, yet are not so easily separated.
The personal auto policy severely restricts coverage for autos that are being used in business. This creates problems for individuals who have accidents with their personal vehicle when their insurance company subsequently discovers that it was being used for business. An insured may believe that the answer to this dilemma is to insure all its vehicles under a commercial auto form and cancel all personal auto policies. Unfortunately, this method works well with respect to owned vehicles, but it creates significant gaps in coverage for family members. CA 99 17-Individual Named Insured closes many of those gaps. Attaching it is mandatory when an individual is a named insured and does not involve any additional premium charge.
CA 99 23-Rental Reimbursement Coverage
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.
CA 99 27-Split Liability Limits
This endorsement replaces the covered autos liability coverage Limit of Insurance with the split Bodily Injury and Property Damage limits on the endorsement schedule.
CA 99 28-Stated Amount Insurance
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 in some cases the loss settlement may be for an amount less than the stated amount.
CA 99 30-Tapes, Records and Discs Coverage
This endorsement deletes the physical damage exclusion applying to tapes, records, and discs, 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.
CA 99 33-Employees as Insureds
This endorsement extends covered autos liability coverage to employees when they use autos that are not owned, hired, or borrowed by the named insured for the named insured's business or personal affairs.
CA 99 34-Social Service Agencies-Volunteers as Insureds
This endorsement is designed for social services agencies to cover volunteers. Anyone who volunteers his or her services to the named insured is covered while using covered non-owned vehicles to transport clients or other people to activities necessary to the named insured's business. Coverage also extends to the owners of the non-owned autos.
CA 99 37-Garagekeepers Coverage
Businesses that might be interested in purchasing this coverage include service stations, restaurants, and hotels with valet parking, parking lots, parking garages, airport parking lots, special event venues with valet parking, and car washes. The coverage can be purchased by any operation that attends, services, repairs, parks or stores non-owned automobiles. This endorsement is needed because automobile and general liability coverage forms exclude property damage coverage for automobiles in the named insured's care, custody, and control.
CA 99 40-Exclusion or Excess Coverage Hazards Otherwise Insured
This endorsement excludes or limits covered autos liability coverage for the auto scheduled on this endorsement. This is meant to be used only when that scheduled auto is covered under another coverage form or policy. This is very useful when other than Symbol 7 is used.
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
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.
CA 99 48-Pollution Liability-Broadened Coverage for Covered Autos-Business Auto and Motor Carrier Coverage Forms
This endorsement broadens pollution coverage to apply to bodily injury and property damage liability and covered pollution costs or expenses caused by pollutants while being transported, handled or stored on the auto. This applies only for liability that has NOT been assumed under a contract. It also deletes the Care, Custody, or Control exclusion but only as it relates to the pollution coverage granted under this endorsement.
CA 99 54-Covered Auto Designation Symbol
This endorsement is used to add a covered auto symbol to any of the auto coverage forms and to manuscript a definition for it to describe what is considered a covered auto.
CA 99 59-Garagekeepers Coverage-Customers' Sound-Receiving Equipment
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
This endorsement allows for audio, visual and data electronic equipment per loss higher limits to be provided for scheduled automobiles. The scheduled limits are in excess of the $1,000 sub-limit for audio, visual and data electronic equipment coverage provided in the coverage form limit of insurance.
CA 99 61-Loss Payable Clause-Audio, Visual and Data Electronic Equipment Added Limits
This is identical to the CA 99 60 above except for specific references to loss payee concerns.
CA 99 90-Optional Limits-Loss of Use Expenses
This endorsement modifies the Physical Damage Loss of Use Expense Coverage Extension limits of $20 per day with a $600 maximum. It allows a higher amount per day and a higher maximum.
What Are IL 00-12 - Interline Endorsements?
The IL 00-12 - Interline Endorsements are as follows:
IL 00 03-Calculation of Premium
This endorsement states that the insurance company uses the rules and rates in effect as of the 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 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.
What Are Commercial Auto Insurance Endorsements? - The Bottom Line
What are commercial auto insurance endorsements? An endorsement alters the Business Auto Policy and becomes part of your commercial insurance agreement, and it remains in force until the contract term expires.
The only exception to the above rule is if the commercial auto endorsement has a specific or limited term to which the endorsement is valid. It may renew under the same terms and conditions of the rest of your policy.
Additional Commercial Insurance Endorsements Information
Learn about small business commercial endorsements that add, remove, or change your policy's coverage by altering the standardized coverage form.
- What Are Businessowners Policy Insurance Endorsements?
- What Are Commercial Auto Insurance Endorsements?
- What Are Commercial Crime Endorsements?
- What Are Commercial General Liability Insurance Endorsements?
- What Are Commercial Property Insurance Endorsements?
- What Are Commercial Umbrella Insurance Endorsements?
- What Are Cyber Insurance Endorsements?
- What Are Employment-Related Practices Liability Insurance Endorsements?
- What Are Farm And Ranch Insurance Endorsements?
- What Are Time Element Insurance Endorsements?
- What Are Workers Compensation Insurance Endorsements?
Commercial insurance endorsements are additional provisions or clauses added to a business insurance policy that either expand or restrict coverage. They are used to tailor the policy to the specific needs of the business and can cover a wide range of risks, including property damage, liability, and business interruption.
There are several types of commercial insurance endorsements, including:
- Coverage Endorsements: These endorsements add coverage to the policy, such as increased liability limits or coverage for specific types of property damage.
- Exclusion Endorsements: These endorsements remove coverage from the policy, such as excluding coverage for specific types of losses or risks.
- Amendment Endorsements: These endorsements modify the terms of the policy, such as changing the policy limits or the type of coverage provided.
- Waiver of Subrogation Endorsements: These endorsements waive the insurer's right to pursue subrogation (seeking reimbursement from a third party) in the event of a loss, which can be beneficial for businesses with complex supply chains.
There are many types of commercial insurance endorsements - and while some favor the insurer (by excluding coverage) and some benefit the insured (by adding coverage), below is a list of some of the most common uses for business insurance endorsements:
- Additional Insured: This is one of the most common endorsements that adds someone other than you to your insurance policy. It is typically required by some sort of contract. Common additional insureds are landlords, general contractors, vendors or customers.
- Administrative Changes: Newly issued policies can include mistypes, misspellings, or missing words altogether. To correct these errors, the insurer would add an endorsement, rather then having to cancel and issue a new policy. If a policyholder changes their name, an endorsement would reflect that too.
- Changing Or Adding Addresses: This endorsement covers any change to the insured's property like moving your office to a new location, or expanding to a another location.
- Deductible Changes: This endorsement manages who can change your deductible as well as when and how much it can be changed.
- Increased Limits: Occasionally companies need to add endorsements to increase the limits of insurance. For example, you'd use an endorsement to extend workers' compensation benefits not covered by state law. Or, to get a contract you need higher limits on your general liability policy.
Commercial insurance endorsements are an important tool for businesses to ensure they have the coverage they need to protect their assets and operations. It is important for businesses to carefully review and understand their endorsements to ensure they have the appropriate level of coverage for their specific needs.
Making a policy change usually affects your insurance premium. Anytime coverage is altered there is likely a cost associated with how the policy premium is calculated. Adding coverage usually makes the premium increase, while excluding coverage can reduce the premium you pay.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Small business insurance is a type of insurance that is specifically designed for small businesses. It helps protect a business from various types of risks and losses that it may face, such as property damage, liability, and financial losses.
It is important for small business owners to carefully consider their insurance needs and choose policies that are appropriate for their business.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.