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We wrote in the last issue about revisions to standard insurance policy forms being rolled out this year, and specifically about changes to general liability forms that would likely to affect most readers.
There are some major changes to standard business auto forms and endorsements, too. As part of this 2013 business auto form revision, ISO introduced 32 new forms and endorsements; revised 97; and withdrew 10 forms and endorsements from use.
The major changes center around introduction of the Auto Dealers Coverage Form as the replacement for the Garage Coverage Form. As part of this change the Garage Coverage Form is withdrawn and all endorsements related to it are either revised, withdrawn completely, or editorially altered to remove every reference to Garage Coverage. Thirty-one of the 32 newly introduced forms and endorsements relate to or specifically arise from this transition to the Auto Dealers Coverage Form. These changes will affect only those businesses involved in the auto industry; if that’s you, give us a call and we’ll be happy to review them with you. For other readers, these will have no impact.
There are two revisions that could affect most readers, though, and they are worth a few words of explanation. One is a revision to the “Employee Hired Autos” endorsement, which many of you have on your commercial auto policies. This endorsement extends liability protection to short term vehicles rented by your employees while conducting your business. The classic example of this is the executive or salesman who travels to visit a client or vendor and rents a car during the trip. The impact of the revision is to clarify and slightly broaden coverage, so it’s a net plus for policyholders.
The other revision is to the “Hired Autos Specified as Covered Autos You Own” endorsement. This applies when you have long term leased or rented vehicles, and, as with the Employee Hired Autos endorsement, it clarifies and broadens coverage.
Finally, some readers may have a business where they occasionally hook their tractors up to non owned trailers. The “Trailer Interchange Coverage” endorsement is also changed. The important change made to this endorsement is an additional definition added to reinforces that the term “trailer” includes a semitrailer or a dolly used to convert a semitrailer into a trailer. In regards to Trailer Interchange Coverage only, a “trailer” also includes a container (such as an intermodal container).
Bottom line, some widely used endorsements that affect most of our readers are changed in ways that generally are beneficial to you. If you are in the auto business, changes are more significant; we’ll review those with you individually.