Truckers Coverage Form

Truckers Coverage Form

October 2008

ISO Simplified-Language Form

Summary: Physical damage and liability insurance for truckers (persons or organizations “engaged in the business of transporting property by auto for hire”), including coverage of the specialized liability exposure created by trailer interchange agreements, is provided in the truckers coverage form of Insurance Services Office, CA 00 12 03 06. The truckers form replaces earlier methods of arranging equivalent coverage by means of a number of endorsements to the comprehensive or basic automobile policy. Like the business auto coverage form that replaced those earlier contracts, the ISO truckers coverage form features a simplified-language format.

In most respects, the words and phrases that make up the truckers form follow the language of the business auto coverage form (CA 00 01 03 06) and the motor carrier coverage form (CA 00 20 03 06). For example, the liability coverage insuring agreement on all the forms states that the insurer will pay all sums that the insured legally must pay as damages due to injury caused by an accident and resulting from the ownership, maintenance, or use of a covered auto. As befits its specialized purpose, however, the truckers form does alter certain provisions and adds other provisions to fit coverage more precisely to the loss exposures faced by for-hire carriers of property.

The following discussion centers, therefore, on the areas of the truckers form that are unique to that form. Provisions of the truckers coverage form not discussed in these pages are those that are identical to the corresponding provisions of the business auto form and the motor carrier coverage form.

Topics covered:Covered autosLiability coverageTrailer interchange coveragePhysical damage coverageTruckers conditionsDefinitions

Covered Autos

The truckers form makes use of a set of numerical symbols for designating which autos qualify as “covered autos,” just as the business auto and motor carrier forms do. The truckers symbols and the categories of vehicles they designate are as follows:

41 — Any “Autos”

42 — Owned “Autos” Only. Only the “autos” you own (and for liability coverage any “trailers” you don’t own while connected to a power unit you own). This includes those “autos” you acquire ownership of after the policy begins.

43 — Owned Commercial “Autos” Only. Only those trucks, tractors and “trailers” you own (and for liability coverage any “trailers” you don’t own while connected to a power unit you own). This includes those trucks, tractors and “trailers” you acquire ownership of after the policy begins.

44 — Owned “Autos” Subject to No-Fault. Only those “autos” you own that are required to have no-fault benefits in the state where they are licensed or principally garaged. This includes those “autos” you acquire ownership of after the policy begins provided they are subject to the no-fault law in the state where they are licensed or principally garaged.

45 — Owned “Autos” Subject to a Compulsory Uninsured Motorists Law. Only those “autos” you own that, because of the law in the state where they are licensed or principally garaged, are required to have and cannot reject uninsured motorists insurance. This includes those “autos” you acquire ownership of after the policy begins provided they are subject to the same state uninsured motorists requirement.

46 — Specifically Described “Autos”. Only those “autos” described in ITEM THREE of the truckers declarations page for which a premium charge is shown (and for liability coverage any “trailers” you don’t own while attached to any power unit described in ITEM THREE).

47 — Hired “Autos” Only. Only those “autos” you lease, hire, rent or borrow. This does not include any “private passenger type auto” you lease, hire, rent or borrow from any member of your household, any of your “employees”, partners (if you are a partnership), members (if you are a limited liability company), or agents or members of their households.

48 — “Trailers” in Your Possession Under a Written Trailer or Equipment Interchange Agreement. Only those “trailers” you do not own while in your possession under a written “trailer” or equipment interchange agreement in which you assume liability for “loss” to the “trailers” while in your possession.

49 — Your “Trailers” in the Possession of Anyone Else Under a Written Trailer Interchange Agreement. Only those “trailers” you own or hire while in the possession of anyone else under a written “trailer” interchange agreement. When symbol “49″ is entered next to a physical damage coverage in ITEM TWO of the declarations, the physical damage coverage exclusion relating to “loss” to a “trailer” in the possession of anyone else does not apply to that coverage.

50 — Nonowned “Autos” Only. Only those “autos” you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes “private passenger type autos” owned by your “employees”, partners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your business or your personal affairs.

59 – Mobile Equipment Subject to Compulsory or Financial Responsibility or Other Motor Vehicle Insurance Law Only. Only those “autos” that are land vehicles and that would qualify under the definition of “mobile equipment” under this policy if they were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where they are licensed or principally garaged.

Analysis