2020 Commercial Auto Revisions

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Old Republic Insurance Company is adopting the latest Commercial Auto revisions from Insurance Services Office, Inc. (ISO) effective April 1, 2022. The Commercial Auto Coverage forms, and endorsements updated in this revision will display an edition date of 11/20 and will replace the prior editions.

These changes impact the Business Auto, Auto Dealers and Motor Carrier Coverage forms & related endorsements. This article is intended to provide an overview of key amendments, primarily of the Business Auto Coverage Form, which contains changes that are also included in the other two coverage forms.

Liability Updates

These changes are intended to enhance or clarify the current coverage forms related to liability coverages.

  • Owned Autos You Acquire After the Policy Period Begins: A new paragraph 3. has been added to provide that certain autos leased or rented for a continuous period of six months or more will be considered owned autos under the policy.
  • Automatic Trailer Liability Coverage: A 3,000 pound gross vehicle weight rating corresponds with the type of trailers that qualify for automatic coverage. The language requires trailers to be registered and therefore adds clarity to as to whether or not a trailer is eligible for coverage.
  • Unmanned Aircraft Exclusion: The Unmanned Aircraft Exclusion is being added to reinforce that aircraft exposures are not contemplated under auto liability insurance.

Physical Damage Updates

The coverage forms and related sections of the Declarations amend values, deductibles or extensions of coverage.

  • Towing and Labor Coverage: In response to insurer communications expressing interest in extending coverage to other than private passenger types, the coverage form is being extended to include light or medium trucks. This may require a change to the related covered auto symbol selected in the Declarations.
  • Revised Physical Damage Coverage Deductible Provision: The perils of Comprehensive or Specified Causes of Loss will include a new maximum deductible equal to five times the highest deductible that applies to autos not held for sale. This will include a significant change to the respective Declarations to properly reflect those values.
  • Transportation Expense and Loss of Use Expenses: As a result of inflation and other market factors, current limits are increasing for Transportation Expenses and Loss of Use Expenses to reflect $30 per day, subject to a maximum of $900.

Please note that several endorsements were also updated as part of this revision. However, those endorsement changes are beyond the scope of this article. We encourage you to discuss those endorsement revisions with your broker or legal counsel if you have questions or concerns.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

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Underwriting Consulting Group

The Underwriting Consultant Group provides in-house technical underwriting support for Old Republic Risk Management. The group is responsible for setting and communicating underwriting guidelines for the company, working closely with the Product Development and Compliance Department. The Underwriting Consulting Group is based out of the corporate offices in Brookfield, WI.

Kennedy Puidokas
Hope Ziarnik