1. Forms
2. CA
3. CA-20-02

Form CA 20 02: Audio, Visual And Data Electronic Equipment Coverage - Fire, Police And Emergency Vehicles

What it is: Form CA 20 02 is an endorsement to the Business Auto Coverage Form in commercial auto insurance. Its primary purpose is to broaden or remove the exclusion for loss or damage to audio, visual, and data electronic equipment that is permanently installed in covered "autos" that are fire department, police department, or emergency vehicles. Standard commercial auto policies often exclude or limit coverage for such specialized electronic equipment. This endorsement specifically addresses that gap for these essential service vehicles. It ensures that the sophisticated and often expensive electronic gear crucial for their operations (like communication systems, navigation, and data terminals) is adequately protected against physical damage.

Classes of business it applies to: This endorsement is specifically designed for and applies to:

• Police departments: Including municipal, county, and state law enforcement agencies. For example, a city police department would use this endorsement to cover the mobile data terminals (MDTs), GPS units, and specialized radio communication systems in their patrol cars.
• Fire departments: Encompassing both paid and volunteer fire departments. A volunteer fire department, for instance, would utilize this to insure the communication and navigation equipment in their fire trucks and other emergency response vehicles.
• Emergency vehicles owned by governmental entities: This includes ambulances, rescue squad vehicles, and other emergency response units owned by local, state, or federal governments or their agencies. For example, a county-owned ambulance service would need this endorsement for the life-monitoring equipment, communication systems, and navigation devices installed in their vehicles.
• Emergency vehicles owned by volunteer fire departments, rescue squads, or ambulance corps operations.

Essentially, any organization operating these types of emergency vehicles with permanently installed electronic equipment would be a candidate for this endorsement.

Special considerations:

• Mandatory Nature in Some Cases: Some sources suggest this endorsement is mandatory when the policy insures police, fire, or other emergency vehicles to cover customary, permanently installed electronic equipment.
• Permanently Installed Equipment: Coverage typically applies to equipment that is permanently installed in the vehicle. The endorsement clarifies how coverage applies to equipment installed in the opening of the dash or console normally used by the auto manufacturer for such installations, versus equipment installed in other locations.
• Sublimit for Non-Manufacturer Designated Locations: The endorsement often includes a specific sublimit (e.g., $1,000) for electronic equipment that is permanently installed in or upon locations of a covered auto other than those normally used by the auto manufacturer for the installation of such equipment. However, some versions of the endorsement may remove this sublimit.
• No Additional Charge: In many instances, this endorsement is used to remove the exclusion relating to this equipment without an additional charge for the specified emergency vehicle types.
• Physical Damage Coverage: This endorsement modifies the Physical Damage Coverage section of the Business Auto Coverage Form.

A real-world example of a special consideration would be a police department that retrofits its older vehicles with new, expensive data terminals in custom-mounted locations. The CA 20 02 endorsement would be crucial to ensure these non-standard installations are covered, potentially subject to the sublimit if not in a manufacturer-designated spot.

Key information for agents and underwriters:

• Risk Assessment: Underwriters should assess the value and type of electronic equipment installed in the emergency vehicles. This includes understanding whether the equipment is standard for such vehicles or highly specialized and expensive, which could impact the overall exposure. The age and condition of the vehicles and the equipment are also relevant.
• Coverage Gaps: Agents should be aware that without this endorsement (or a similar one like CA 99 60 for non-emergency vehicles), there could be significant coverage gaps for expensive electronic equipment. Standard policies often limit coverage for electronic equipment not in the manufacturer's designated locations.
• Pricing: While often provided at no additional charge for the specified emergency vehicle types, underwriters should still factor in the presence of high-value equipment when assessing the overall risk profile of the account. If particularly high-value or custom equipment is present, a review of the adequacy of any sublimits or the potential need for higher overall physical damage limits might be necessary.
• Underwriting Guidelines: Ensure the vehicles clearly fall under the defined categories of police, fire, or emergency vehicles as outlined in the endorsement. Verify that the equipment is indeed permanently installed. For equipment in non-manufacturer designated locations, be clear about the applicable sublimit.
• Clarity on "Customary" Equipment: While the endorsement aims to cover "customary" equipment, exceptionally unique or high-value items might warrant specific discussion and documentation to avoid misunderstandings at the time of a claim.

For example, an underwriter reviewing an application for a fire department should inquire about the types of communication, navigation, and data systems in their vehicles. If the department has recently invested in state-of-the-art thermal imaging cameras integrated into their trucks, the underwriter would want to ensure these are properly accounted for and that the CA 20 02 endorsement is appropriately applied.