1. Forms
2. CA
3. CA-00-12

What the form is

The Truckers Coverage Form (CA 00 12) is an insurance policy form developed by the Insurance Services Office (ISO) specifically for trucking businesses that transport goods for others for a fee. Its purpose is to provide liability and physical damage coverage tailored to the unique exposures faced by common carriers operating under government regulation and over designated routes or territories. This form was developed before the deregulation of the motor transportation industry and is still used, primarily by common carriers. It addresses specific needs such as liability for hauling goods for others and trailer interchange situations, where one trucker is using a trailer owned by another.

Classes of business it applies to

This form is primarily intended for:

• Common Carriers: Trucking companies that offer their services to the general public to transport goods for a fee, often operating under specific governmental authority or over set routes. For example, a trucking company that hauls various types of freight for different customers along established interstate routes.
• Truckers subject to government regulation: Businesses whose trucking operations fall under specific regulatory requirements concerning financial responsibility and operational authority.

It is generally not used for contract carriers (who haul for specific customers under contract and can use the Business Auto or Motor Carrier forms) or private carriers (businesses hauling their own goods, who would typically use the Business Auto Coverage Form).

Special considerations

• Deregulation Impact: The CA 00 12 was developed prior to significant deregulation in the trucking industry. The Motor Carrier Coverage Form (CA 00 20) was later introduced to address the more flexible contractual relationships prevalent in the current regulatory environment. While CA 00 12 is still in use, the CA 00 20 is often considered more suitable for many modern for-hire trucking operations due to its emphasis on contracts rather than regulatory trucking language to define insured status.
• Trailer Interchange Coverage: A key feature of this form is the specific Trailer Interchange Coverage, which provides physical damage coverage for non-owned trailers in the trucker's care, custody, or control under a written trailer interchange agreement. This is crucial for truckers who frequently haul trailers belonging to other entities.
• Who is an Insured: The definition of an insured in the Truckers Form differs from the standard Business Auto Form, particularly concerning owner-operators and when vehicles are leased to others. Under the Truckers form, the insured's coverage is typically primary when using a hired vehicle from an independent owner-operator if the insured is operating under their regulatory authority.
• Withdrawal in Some Jurisdictions: Some states or regulatory bodies may have withdrawn or replaced the CA 00 12. For example, in Massachusetts, there have been moves to withdraw the CA 00 12 and use the CA 00 01 (Business Auto Coverage Form) instead for truckers.

Key information for agents and underwriters

• Verify Operational Authority: It's crucial to confirm that the insured's operations align with the intent of this form, particularly regarding their status as a common carrier operating under governmental authority. Misclassifying a risk (e.g., using CA 00 12 for a contract carrier who should be on a CA 00 20 or CA 00 01) can lead to coverage gaps.
• Assess Trailer Interchange Exposures: Thoroughly evaluate the extent of non-owned trailer usage and ensure adequate limits are in place for Trailer Interchange Coverage. Review written interchange agreements to understand the liabilities assumed.
• Primary vs. Excess Coverage: Understand the 'Other Insurance' clause, which often makes the trucker's policy primary for hired autos (like those of owner-operators under dispatch) and excess when their owned auto is leased to another motor carrier operating under their own authority.
• Consider CA 00 20 as an Alternative: For many for-hire carriers, especially those with more flexible contractual arrangements or those not strictly operating as traditional common carriers, the Motor Carrier Coverage Form (CA 00 20) might be a more appropriate choice. ISO has indicated that the CA 00 20 is designed for the current regulatory climate and encourages greater negotiation in shipping contracts. In fact, some sources suggest that ISO has eliminated the CA 00 12, with the CA 00 20 being the primary ISO auto form specifically designed for the trucking industry, although the CA 00 01 can also be used.
• Endorsements: Be aware of relevant endorsements, such as CA 23 09 (Truckers—Insurance For Non-Trucking Use), which might be needed for owner-operators who use their trucks for personal use when not under dispatch.