1. Forms
2. CA
3. CA-04-39

What the form is

The CA 04 39 Volunteer Hired Autos endorsement is designed to modify commercial auto insurance policies, such as the Business Auto Coverage Form (e.g., CA 00 01), Auto Dealers Coverage Form (CA 00 25), or Motor Carrier Coverage Form. Its primary purpose is to add a "volunteer" as an "insured" when they are operating an "auto" that has been hired or rented under a contract or agreement in the volunteer's personal name. This coverage applies when the volunteer is performing duties related to the conduct of the named insured's business and has the named insured's permission. The endorsement provides both Covered Autos Liability Coverage and Physical Damage Coverage for these volunteer-hired vehicles.

Classes of business it applies to

This endorsement is particularly relevant for organizations that rely on volunteers who might need to rent vehicles to carry out their duties. Examples include:

• Non-profit organizations: Volunteers might rent vans or cars to transport goods, people for events, or supplies.
• Social service agencies: Volunteers could rent vehicles to take clients to appointments or for other program-related travel.
• Community groups and clubs: Volunteers organizing events or activities might hire vehicles.
• Any business that utilizes volunteers in a capacity that could involve them renting a vehicle in their own name for business-related tasks.

Special considerations

• Addresses a coverage gap: Standard Business Auto Policies often exclude coverage when an employee or volunteer rents a vehicle in their own name; this endorsement specifically closes this gap for volunteers.
• Permission and Business Purpose: Coverage is contingent on the volunteer performing duties related to the insured's business and doing so with the insured's permission.
• Rental Agreement: The existence of a hired or rental contract or agreement is necessary to substantiate the arrangement.
• Bodily Injury Exclusion: The endorsement includes an exclusion for bodily injury sustained by any "volunteer", fellow "volunteer", or the spouse, child, parent, brother, or sister of that "volunteer".
• Distinction from other endorsements: It differs from CA 20 54 (Employee Hired Auto), which is for employees renting vehicles, and CA 05 24 (Non-Ownership Liability Coverage For Volunteers), which applies when volunteers use their own personally owned vehicles for the insured's business.

Key information for agents and underwriters

• Recent Form: This is a relatively new endorsement, introduced by ISO with an effective date of November 2020.
• Risk Assessment: Underwriters should evaluate the extent of volunteer involvement and the likelihood of volunteers renting vehicles. This includes the types of vehicles, frequency of use, and the nature of the duties performed.
• Policy and Procedures: Advise insureds to establish clear guidelines for volunteers who rent vehicles, including authorization processes and ensuring proper rental agreements are in place.
• Communicate Exclusions: It's crucial to explain the bodily injury exclusion for volunteers and their relatives to the insured.
• Applicability: This endorsement can be attached to Business Auto, Auto Dealers, and Motor Carrier coverage forms.
• Purpose: It helps protect the named insured organization from liability arising out of a volunteer's operation of a vehicle rented in the volunteer's name for the organization's benefit.