What it does
The business auto form excludes property damage to property owned or transported by, or in the care, custody or control of, the insured. For a covered auto licensed or used to transport the public, CA 24 02 provides that the Care, Custody Or Control exclusion does not apply to property damage to, or covered pollution cost or expense involving, property of the insured's passengers while that property is carried by the covered auto.
Who needs it
Public transportation risks: buses, airport shuttles, taxis, limousines, paratransit and tour operators whose passengers carry luggage and personal items.
Key points
- Only passengers' property while carried in the covered auto is affected; freight or packages carried for hire are a cargo exposure.
- Interstate passenger carriers need federal limits and the MCS-90B endorsement; for-hire passenger carriers with 16 or more seats must show $5,000,000, and those with 15 or fewer $1,500,000.
Quoting notes
Ask about baggage handling and any lost or damaged baggage claims history, and confirm whether the operation also carries packages for hire.
