What it does
CA 23 12 adds the lessee named in its schedule as an insured for the use of a covered auto the named insured owns or hires, subject to conditions:
- the auto must be used under operating rights granted to the lessee by a public authority;
- it must be leased in writing under a written hold-harmless agreement between the named insured and the lessee; and
- the Contractual exclusion does not apply to that lease agreement, so the hold-harmless promise to the lessee is covered.
It modifies the business auto and motor carrier forms; the 2013 edition renamed it from "Truckers –".
Who needs it
Owner-operators and fleet owners who lease equipment to a for-hire carrier under a lease in which the owner agrees to insure and hold the carrier harmless, and leasing operations supplying trucks with drivers.
Quoting notes
Read the lease: who must insure whom, primary or excess, and the hold-harmless direction. The mirror-image endorsement for the lessee's side is CA 23 08. Remember that the motor carrier form already limits insured status for other for-hire carriers unless the named insured leased the auto to them under a hold-harmless lease.
