What it does
CA 20 01 is the standard endorsement leasing companies require from commercial lessees. For each leased auto described in the schedule:
- The leased auto is treated as a covered auto the insured owns, not one it hires or borrows, so owned-auto symbols and primary other-insurance treatment apply.
- The lessor named in the schedule is added as an insured for covered autos liability, but only for bodily injury or property damage resulting from the acts or omissions of the named insured, its employees or agents, or others driving the leased auto with permission (other than the lessor and its people).
- Physical damage losses are paid to the named insured and the lessor "as interest may appear." The lessor's interest is protected even if the loss results from the insured's fraudulent acts or omissions, and the insurer takes over the lessor's recovery rights after paying it.
- The lessor receives notice if the policy is cancelled and is not liable for premium.
A "leased auto" is one leased or rented to the insured, including substitutes and extra autos for seasonal needs, under an agreement that requires the insured to provide direct primary insurance for the lessor. The current multistate edition is 11 20 (several states have their own versions, such as Virginia CA 20 39 and Tennessee CA 04 30).
Who needs it
Any lessee of fleet vehicles, long-term rentals or financed leases where the lease contract requires insurance for the lessor.
Quoting notes
- Coverage on each leased auto ends at the schedule's expiration date or when the lessor repossesses, whichever is first.
- Schedule the leased autos and the lessor's legal name and address exactly as the lease shows them; leasing companies often reject certificates that do not match.
- For financed (not leased) autos, a lender loss payee is handled with CA 99 44 instead.
