1. Forms
2. CA
3. CA-00-05

What the Form Is

The Garage Coverage Form CA 00 05 is a specialized commercial insurance policy designed to address the unique and overlapping liability exposures faced by businesses primarily engaged in auto sales, service, parking, or storage. Its fundamental purpose is to combine aspects of a Commercial General Liability (CGL) policy and a Business Auto Policy (BAP) into a single, integrated form. This structure aims to provide seamless coverage for premises and operations liability, products and completed operations liability, automobile liability, and physical damage to the insured's covered autos, while also offering Garagekeepers coverage for customers' vehicles. The form is intended to prevent potential coverage gaps or overlaps that could arise if these exposures were insured under separate policies.

Classes of Business It Applies To

The CA 00 05 is specifically tailored for businesses where automobile-related risks are central to their operations. While its use for auto dealers has largely been superseded by the CA 00 25 Auto Dealers Coverage Form, the principles of CA 00 05 are foundational, and the form itself (or similar proprietary forms) may still be encountered for other types of garage businesses. Real-world examples include:

• Automobile Repair Shops: Businesses that service and repair customer vehicles, involving test drives and possession of customer autos.
• Service Stations: Facilities that, in addition to selling fuel, may perform light maintenance and repair work.
• Storage Garages and Public Parking Facilities: Businesses that take custody of vehicles for parking or storage purposes.
• Specialty Auto Shops: Such as body shops, transmission repair, muffler shops, and auto glass installers.
• Businesses Performing Vehicle Inspections or Detailing.

Special Considerations

Understanding the nuances of the CA 00 05 is critical for proper coverage application. Key considerations include:

• Evolution of Coverage: It's important to recognize that for new auto dealer policies, the Insurance Services Office (ISO) introduced CA 00 25 Auto Dealers Coverage Form to replace CA 00 05. Furthermore, for some auto service risks, there has been a trend towards using a combination of standard CGL and Business Auto forms, or even Businessowners Policies (BOPs) for eligible smaller operations.
• Dual Nature of Liability Coverage: Section II (Liability Coverage) is typically divided into two main parts: "Garage Operations – Other Than Covered Autos," which addresses premises and operational exposures similar to a CGL, and "Garage Operations – Covered Autos," which handles liability arising from the ownership, maintenance, or use of autos.
• Garagekeepers Coverage: This is a vital component (often Section III) that covers damage to customers' vehicles while in the insured's care, custody, or control for service, repair, storage, or safekeeping. This coverage can usually be written on several bases:
  • Legal Liability: Covers damage only if the insured is legally liable.
  • Direct Primary: Covers damage regardless of the insured's legal liability.
  • Direct Excess: Covers damage regardless of legal liability, but only after the customer's own insurance has paid (if any).
• Covered Auto Symbols: Like the Business Auto Policy, the CA 00 05 utilizes numerical symbols (detailed on the Garage Declarations page, historically CA DS 00 or a similar declarations form) to define which autos are considered "covered autos" for each purchased coverage. The accuracy of these symbols is paramount.
• Specific Exclusions: The form contains various exclusions, such as for expected or intended injury, certain contractual liabilities, workers' compensation, and often, the diminution of value or loss of market for a dealer's auto that has been damaged and repaired.

Key Information for Agents and Underwriters

For insurance agents and underwriters, working with garage risks requires a detailed understanding of their multifaceted operations. Practical insights include:

• Thorough Risk Assessment: Evaluating a garage risk involves analyzing both its general liability exposures (e.g., customer slips and falls on premises, faulty repair work leading to an accident off-premises – products/completed operations) and its extensive auto-related exposures (e.g., employee test drives of owned or customer vehicles, physical damage to inventory and customer vehicles, liability from loaner cars).
• Matching Coverage to Exposure: Agents must carefully select the appropriate covered auto symbols and Garagekeepers coverage options to align with the client's specific operations and risk appetite. For example, a high-volume repair shop will have significant Garagekeepers exposure.
• Understanding "Garage Operations": The policy defines "garage operations" broadly, encompassing not just the primary business activities but also operations necessary or incidental to them. This can extend coverage to activities that might not be immediately obvious.
• Endorsements: The base CA 00 05 form can, and often should, be modified with endorsements to tailor coverage. For instance, the Broadened Coverage – Garages endorsement (e.g., CA 25 14) can add important protections. Agents should review available endorsements to address potential coverage gaps.
• Pricing and Underwriting Factors: Underwriters will typically assess factors such as the type of garage operation (dealer vs. non-dealer, repair vs. storage), number of employees (especially those driving vehicles), payroll, scope of services (e.g., types of repairs undertaken), value of owned auto inventory, average value and number of customer vehicles, loss history, and driver MVRs.
• Clarity on "Auto" Definition: The definition of "auto" within the garage form is broad and may include land motor vehicles, trailers, or semi-trailers without necessarily requiring them to be licensed for public road use, which can be pertinent for some operations.