ISO AUTO DEALERS COVERAGE FORM OVERVIEW

(October 2022)

INTRODUCTION

The Insurance Services Office (ISO) CA 00 25-Auto Dealers Coverage From replaced the CA 00 05–Garage Coverage Form in the 10 13 Commercial Automobile Forms revision. It covers eligible businesses' general liability and automobile liability exposures. Because a single coverage form is used to cover both the general liability and automobile related liability exposures, the potential for coverage gaps and/or overlaps is reduced. This coverage form includes premises liability, products liability, automobile liability, and errors and omissions coverage. It also provides physical damage coverage on vehicles owned by either the named insured or its dealer customers. A range of endorsements is available to tailor coverage for the specific dealership.

CA 00 25–Auto Dealers Coverage Form Analysis

ISO Auto Dealers Coverage Form Available Endorsements and Their Uses

ELIGIBILITY

Franchised and non-franchised auto dealers, trailer dealers and equipment and implement dealers are eligible to be insured under this coverage form.

POLICY MAKE-UP

ISO Auto Dealers coverage is written using five basic forms:

IL DS 00–Common Policy Declarations

Note: This may be combined with the Garage Declarations.

IL 00 17–Common Policy Conditions

Note: This form contains conditions common to all commercial lines of insurance. It is a mandatory part of most monoline and commercial multi-line policies.

CA DS 26–Auto Dealers Declarations

Related Article: CA DS 26–Auto Dealers Declarations

CA 00 25–Auto Dealers Coverage Form

222.4-2, CA 00 25–Auto Dealers Coverage Form Analysis

Policy Cover Page or Jacket. This form is designed by individual insurance companies for their own purposes and may include a table of contents or index to meet the requirements of some states.

CA 00 25–AUTO DEALERS COVERAGE FORM

The Auto Dealers Coverage Form has five sections:

Section I–Covered Autos

This section describes covered autos based on symbols on the declarations.

Section II–General Liability Coverage

This section identifies the liability coverage for auto dealership operations, including coverage extensions, exclusions, limits of insurance and deductibles.

Section III–Acts, Errors or Omissions Liability Coverage

This section covers mistakes in various aspects of a professional auto dealership, such as the handling of titles, odometers and other items.

Section IV–Conditions

This section includes both Loss Conditions and General Conditions.

Section V–Definitions

This section defines certain terms used in the coverage form.

ENDORSEMENTS

Endorsements are used to modify the coverage form. They may expand, clarify or restrict coverage. Some of the endorsements provided are available to any of the commercial auto coverage forms, while some are available for only the auto dealer coverage forms.

UNDERWRITING

Underwriting and rating auto dealers coverage involves understanding the named insured's operation. This includes careful examination of both public liability and automobile liability coverages because this coverage form covers premises and operations hazards, products and completed operations hazards, and automobile liability exposures. Detailed loss history and associated information is an important part of the underwriting and rating process. Loss frequency, severity, and total losses help determine risk acceptability and the total premium to charge.

RATING

Auto Dealer exposures have more in common with general liability rating than with auto rating because they are based on the number of employees and the values of the vehicles in a given auto dealer operation.