Motor Carrier Form—Liability Coverage

Summary: This article discusses the insuring agreements and the exclusions that make up section II of the motor carrier coverage form; also included are the who is an insured clauses and the coverage extensions provided by CA 00 20. The wording of the insuring agreements and the exclusions and the other clauses that make up section II of CA 00 20 are taken from the business auto coverage form, CA 00 01 10 13. Even though the motor carrier form is meant to apply to a different type of auto exposure than is the business auto form, the bottom line is that both forms are commercial auto insurance policies, written to provide the insureds with, among other things, liability insurance for damages caused to another party due to the ownership, maintenance, or use of an auto.

Since the wording of the clauses in section II of CA 00 20 are the same as those in section II of the business auto coverage form (CA 00 01), see the section II article on CA 00 01 for analytical information. See, Business Auto Form — Liability Part.

Topics covered:

Insuring Agreements

 The liability insuring agreements on the motor carrier coverage form, CA 00 20, are the same as those on the business auto coverage form, CA 00 01. For an analysis of the insuring agreements, see Business Auto Form — Liability Coverage.

 Who Is An Insured

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 The following are “insureds”:

a.You for any covered “auto”.

b.Anyone else while using with your permission a covered “auto” you own, hire, or borrow except:

(1)The owner, or any “employee”, agent, or driver of the owner, or anyone else from whom you hire or borrow a covered “auto”.

(2)Your “employee” or agent if the covered “auto” is owned by that “employee” or agent or a member of his or her household.

(3)Someone using a covered “auto” while he or she is working in a business of selling, servicing, repairing, parking or storing “autos” unless that business is yours.

(4)Anyone other than your “employees”, partners (if you are a partnership), members (if you are a limited liability company), a lessee, or borrower of a covered “auto” or any of their “employees”, while moving property to or from a covered “auto”.

(5)A partner (if you are a partnership), or member (if you are a limited liability company) for a covered “auto” owned by him or her or a member of his or her household.

 Analysis

 The clauses in this “who is an insured” section of CA 00 20 closely track with those found in the business auto form; for more analysis on these clauses, see Business Auto Form — Liability Coverage.

 There are some differences to note. CA 00 20, as befits a form pertaining to motor carriers, mentions agents and drivers as exceptions to the status of “insureds”. Agents and drivers are terms more likely to appear in the motor carrier business than in a business that incidentally has a business auto exposure; for example, contrast a common carrier that is in the business of transporting goods and property with a publishing company that has a fleet of company cars it allows its salesmen to use on business calls.

 Another set of differences is presented next in both the continuation of the “who is an insured” clauses and also in the “who is not an insured” clauses.

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