CA 20 48: Designated Insured for Covered Autos Liability Coverage

What CA 20 48 does on a business auto policy

The ISO Business Auto Coverage Form already includes, within Who Is An Insured, anyone liable for the conduct of an insured, but only to the extent of that liability. That provision protects a general contractor or owner sued because a subcontractor's driver caused a crash while hauling materials to the site. CA 20 48 schedules the general contractor or owner by name and states that it is an insured for Covered Autos Liability Coverage to the extent it qualifies under Who Is An Insured.

In other words, CA 20 48 documents insured status rather than expanding it. The 10 13 edition says so directly: it identifies the persons or organizations who are insureds under Who Is An Insured and does not alter the coverage provided in the coverage form. That is why some commentators call it redundant. Contracts still require it, because a named schedule removes argument over whether the party qualifies and makes the tender letter cleaner.

Coverage follows the policy's covered auto symbols. If the vendor's policy covers only specifically described autos (symbol 7), a hired or employee-owned pickup used on your job is not a covered auto, and CA 20 48 cannot change that.

How CA 20 48 works in an auto claim against you

Auto claims against general contractors and property owners usually start with a subcontractor's or vendor's vehicle: a delivery truck backing into a pedestrian at the gate, a service van striking a tenant in a parking structure, a hauler losing part of a load on the access road. The injured party sues everyone connected to the site, and you tender to the vendor's auto carrier, citing CA 20 48 and the vicarious liability allegations in the complaint.

The carrier will defend and indemnify you for liability arising from the conduct of its insured in a covered auto. It will not cover your own independent negligence, such as a flagger you employed or a traffic plan you designed; your own auto and general liability programs respond to that. The limit is built into the business auto form, so the contract should not expect the auto endorsement to do what the general liability additional insured endorsements do.

CA 20 48 edition comparison: 02 99 and 10 13

The 02 99 edition, titled Designated Insured, made each scheduled party an insured for Liability Coverage to the extent it qualified under Who Is An Insured, and attached to the Business Auto, Garage, Motor Carrier and Truckers coverage forms. The 10 13 edition was retitled Designated Insured for Covered Autos Liability Coverage to match the 2013 business auto terminology, attaches to the Auto Dealers, Business Auto and Motor Carrier coverage forms, and states that it does not alter the coverage provided in the coverage form.

For logistics and freight contracts, the underlying coverage form matters as much as the edition. A trucking vendor's policy is often written on the Motor Carrier Coverage Form, and that form's own Who Is An Insured wording governs how a shipper, broker or site owner qualifies.

What to require on the auto policy

Ask for the auto endorsements as a set: CA 20 48 or a carrier blanket form for insured status, CA 04 49 for primary and noncontributory status, and CA 04 44 for waiver of subrogation. Specify the covered auto symbol you need, usually symbol 1 (any auto), or symbols 2, 8 and 9 together for owned, hired and nonowned autos.

• Business Auto Liability of not less than $1,000,000 combined single limit each accident, on symbol 1 or symbols 2, 8 and 9.
• CA 20 48 (10 13) or a carrier form at least as broad, scheduling the required parties by name or by written contract description.
• CA 04 49 primary and noncontributory, and CA 04 44 waiver of transfer of rights of recovery.
• For haulers and motor carriers: the Motor Carrier Coverage Form and any regulatory filings the work requires.

How Pikorua Security verifies auto insured status

Pikorua Security reads the auto section of the ACORD 25, including the covered auto boxes, the combined single limit and the ADDL INSD and SUBR WVD columns, and checks it against the endorsement pages. Rule AU-01 requires CA 20 48 or an approved carrier equivalent naming your entities; Rule AU-02 checks the covered auto symbols against your exhibit; Rules AU-03 and AU-04 look for CA 04 49 and CA 04 44 when the contract requires them.

For vendors whose exposure is mostly vehicles, such as haulers, couriers and freight carriers, Pikorua Security can hold site access in Brivo or Openpath until the auto requirements pass, so a truck with a deficient auto packet never reaches the gate.