What it does
CA 23 09 is ISO's non-trucking use ("bobtail") endorsement for the Business Auto Coverage Form. For the covered auto described in its schedule, Covered Autos Liability does not apply:
- while the auto is used to carry property in any business, or
- while it is used in the business of anyone to whom the auto is rented.
It also removes from Who Is An Insured anyone engaged in the business of transporting property by auto for hire who is liable for the named insured's conduct, so the motor carrier the unit is leased to does not become an insured under the owner-operator's policy. The 2013 edition renamed the form from "Truckers –" to "Motor Carriers –".
Who needs it
Owner-operators leased to a for-hire carrier. The carrier's policy is expected to cover the tractor while it is in the carrier's business; the owner-operator still needs liability for personal use and for trips outside that business. Rating manuals treat these bobtail risks as their own classification; the Massachusetts manual limits them to autos "not rented, nor used for business purposes to carry property or to haul someone else's trailers."
Quoting and selling notes
- Get the lease with the motor carrier and confirm when the carrier's coverage attaches and ends.
- Walk the owner-operator through both exclusions; whether the unit was carrying property or being used in the lessee's business at the time of an accident decides which policy responds.
- Physical damage on the tractor is separate and is usually written on the same policy.
- Massachusetts residual market risks use MM 23 07.
