What it does
The business auto form is written for organizations. When the named insured is an individual, CA 99 17 changes the policy so it behaves more like a personal auto policy:
- The fellow employee exclusion does not apply to bodily injury to the individual or family members' fellow employees.
- If an owned private passenger auto is a covered auto for liability, family members become insureds for those autos, and any auto the individual or a family member does not own becomes a covered auto, except autos owned by or regularly available to family members, autos used in the auto business, and non-private passenger autos used in another business.
- The pollution exclusion and broad form nuclear exclusion do not apply to private passenger covered autos, with a nuclear energy liability exclusion added.
- If an owned private passenger auto has physical damage coverage, a "non-owned auto" is also covered, with a $500 maximum for a non-owned trailer.
Who needs it
Self-employed contractors, independent tradespeople, sole proprietor taxi or delivery operators and other individuals who title a private passenger auto in their own name and insure it commercially.
Quoting and selling notes
Rating manuals call for this endorsement whenever an individual's private passenger auto is written on the business auto form, and it is generally added without extra charge (the Massachusetts residual market manual, for example, provides drive other car protection at no additional charge for such autos). Confirm the individual has no separate personal auto policy that would make coverage duplicate.
