What it does
For a covered auto leased to the named insured by a lessor named in the schedule, CA 23 08 makes Covered Autos Liability excess over any other collectible insurance while:
- the auto is leased to the insured in writing and in accordance with a written hold-harmless agreement, and
- the auto is used pursuant to operating rights granted to the insured by a public authority.
If the coverage form is rated on gross receipts, the endorsement adds 15% of the amount the insured is entitled to for transporting property with the leased auto to gross receipts, reflecting the excess exposure. It modifies the business auto and motor carrier forms; the 2013 edition renamed it from "Truckers –".
Who needs it
Carriers that lease power units from fleet lessors or other carriers where the lessor's own policy is primary and the lease contains a hold-harmless in favor of the lessee.
Quoting notes
Obtain copies of the leases, confirm the lessor's primary limits, and check that the operating-rights condition fits the account; for-hire authority is the usual case. Its companion CA 23 12 makes a named lessee an insured when the insured leases its units to others.
