Schedule of Coverage. Because coverage is triggered by a covered loss to “scheduled property,” exactly how that property is scheduled becomes key. ISO provides two approaches, similar to ordering from a menu: Option A (obviously for “a la carte”) allows you to separately describe each item of property to be covered, with a limit of insurance for each; and Option B (for “buffet”) allows you to list all of the property to be covered, with a single limit of insurance applying for the entire meal.

Just as in a restaurant setting, it would make no sense to order both the full buffet and then each menu item separately. ISO requires you to list items of covered property under only one Option, A or B.

Coverage. Similar to the CP 00 30, business income (and extra expense), the CA 99 05 offers both coverages in a single form. Coverage for business income is for actual loss due to a necessary “suspension” of the insured's “operations” during a “period of restoration” caused by direct and accidental loss or damage to “scheduled property” arising from a “covered cause of loss.” Extra expense coverage, if added, is triggered the same way.

The definition of “period of restoration” is basically a cut-and-paste duplication of the commercial property forms. As for the other key terms, while they track commercial property, they are somewhat modified for the auto exposure. Here is what the CA 99 05 has to say:

“Operations” means your business activities described in the schedule that are dependent on “scheduled property.”

“Suspension” means the slowdown or cessation of your “operations.”

Note the “dependent on scheduled property” wording in “operations.” To be covered under the CA 99 05, the triggering loss must be damage to the vehicles, not simply the business. For example, assume the food truck operation includes an office for the conduct of regular business and a warehouse for storing supplies and parking the vehicle when off the streets. If damage due to a covered peril is limited to the warehouse or office, and there is no damage to the vehicle (“scheduled property”), the CA 99 05 will ignore the claim.

Under ISO, to respond for a business income or extra expense loss in such a situation would require a separate commercial property form for those properties.

Covered causes of loss. The choices here are the same comprehensive, specified causes of loss and collision found in the commercial auto coverage forms to which it is attached.

Remember the CA 99 05 coverage is not triggered the same as the commercial property forms—“loss of damage to property”—but only if there is “loss or damage to “scheduled property.”

All in all, the CA 99 05 represents a potential sumptuous repast as your clients' food trucks or other mobile businesses hit the road. And best of all for you and them?

It's available to go.