What it does
The business auto form excludes from insured status a partner (if the insured is a partnership) or member (if an LLC) for a covered auto owned by that partner or member or a household member. CA 05 25, new with the 11 20 revision, extends coverage to partners and LLC members while using autos owned by them or members of their household in connection with the named insured's business. The Massachusetts residual market manual pairs it with CA 05 24 under its non-ownership liability rule.
Who needs it
Law, accounting and consulting partnerships, family LLCs and small firms where owners drive their personal vehicles for client visits or deliveries.
Key points
- The firm's own vicarious liability is already covered by symbol 9; this endorsement protects the individual partner or member.
- Employees (non-owners) are added with CA 99 33 instead.
- Coverage is excess over the partner's or member's personal auto policy.
Quoting and selling notes
Ask how many partners or members drive their own autos for business and what personal limits they carry. Owners often assume the firm policy protects them personally; this endorsement makes that true.
