1. Forms
2. CR
3. CR-99-04

What the Form Is

The CR 99 04, titled "PUBLIC OR LIVERY PASSENGER CONVEYANCE AND ON-DEMAND DELIVERY SERVICES OTHER INSURANCE CONDITION," is an endorsement that modifies the Other Insurance condition in commercial automobile insurance policies, such as the Business Auto Coverage Form, Massachusetts Garage Insurance Policy Coverage Form, and Truckers Coverage Form. Its primary purpose is to address situations where a covered auto is used in connection with a "transportation network company" (TNC) like Uber or Lyft, or an "on-demand delivery platform" like DoorDash. This endorsement stipulates that the liability coverage provided by the commercial auto policy will apply on an excess basis over any other collectible insurance provided by the TNC or delivery network platform when an insured is logged into the platform as a driver.

Classes of Business It Applies To

This endorsement is relevant for any commercial insured whose vehicles might be used for providing TNC passenger services or on-demand delivery services. This includes:

• Businesses that own vehicles used by employees or independent contractors who also engage in TNC or delivery activities. For example, a tradesperson who uses their work van for deliveries through a platform during off-hours.
• Businesses where the owner or employees might use company-insured vehicles for part-time TNC driving or delivery services. For instance, a sales employee who uses a company car and occasionally drives for a TNC on weekends.
• Public automobile classifications where such activities are contemplated.

Special Considerations

• Excess Coverage Clarification: The key function of this endorsement is to make the commercial auto policy's coverage secondary to any insurance provided by the TNC or delivery platform. This means the TNC/platform's policy is intended to respond first to a loss.
• Gig Economy Impact: It's a response to the evolving risks presented by the gig economy and shared mobility services, aiming to prevent coverage disputes and clarify insurer intent.
• Massachusetts Specific: The "CR" prefix and references to Commonwealth Automobile Reinsurers (CAR) indicate this form is primarily designed for use in Massachusetts. Its application and interpretation will be subject to Massachusetts insurance regulations.
• Interaction with Exclusions: This endorsement often works in situations where the TNC/delivery exposure is known and accepted by the insurer to some extent, rather than being entirely excluded. It may be used in conjunction with, or as an alternative to, outright exclusion endorsements for TNC/delivery activities (like CR 99 06). If this endorsement is attached, it implies the activity is being addressed by making the policy excess, rather than by a complete denial of coverage for that activity.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters must thoroughly evaluate the nature and frequency of TNC or on-demand delivery usage. Is it an incidental exposure or a regular part of how the vehicle is used? This will significantly influence the overall risk profile and acceptability.
• Pricing and Rating: The specific exposure of TNC/delivery use needs to be appropriately rated. This endorsement helps define the layer of coverage (excess) being provided, which is a factor in pricing.
• Potential Coverage Gaps: Agents should advise insureds that reliance is first placed on the TNC/delivery platform's insurance. It's crucial to understand the limits and scope of that primary coverage, as the commercial auto policy (with this endorsement) will only pay after the TNC/platform's coverage is exhausted or if it doesn't apply.
• Underwriting Intent: Use of this form signals an underwriting decision to provide coverage on an excess basis for identified TNC/delivery exposures, rather than excluding them entirely. This should be clearly documented.
• Policy Combination: Ensure this endorsement is correctly used with the appropriate base policy forms (e.g., Business Auto Coverage Form, MA Garage Policy, Truckers Coverage Form) and in alignment with other endorsements on the policy.