1. Forms
2. CA
3. CA-20-55

Form CA 20 55: Fellow Employee Coverage

1. What the form is:

The CA 20 55, titled "Fellow Employee Coverage," is an endorsement to the standard Commercial Auto policy (often related to the CA 00 01 Business Auto Coverage Form). Its primary purpose is to modify or delete the "Fellow Employee Exclusion" typically found in commercial auto liability coverage. This exclusion normally prevents coverage for bodily injury to an employee of the insured that arises out of and in the course of their employment, when caused by another employee (a "fellow employee") operating a covered auto. By adding the CA 20 55 endorsement, the policy is broadened to provide liability coverage for the at-fault employee in such situations. This means if one employee injures another while operating a company vehicle during work hours, this endorsement allows the policy to respond to a lawsuit brought by the injured employee against the at-fault employee.

2. Classes of business it applies to:

This endorsement is relevant for a wide range of businesses where employees might drive company vehicles and potentially cause injury to their colleagues. It's particularly important in industries or scenarios such as:

• Construction and Trades: Businesses where employees frequently travel together to job sites in company trucks or vans. For example, if a plumbing company's van, driven by one plumber, is involved in an accident that injures another plumber in the same vehicle.
• Sales and Service Fleets: Companies with sales representatives or service technicians who may carpool or travel together in company-owned vehicles. Imagine two sales reps traveling to a client meeting, and the one driving causes an accident injuring the passenger rep.
• Transportation and Delivery Services: Businesses where driver and helper teams are common. For instance, a delivery company where a driver's negligence injures their partner while on a route.
• Any business where employees operate company vehicles and could have passengers who are also employees. This could include businesses sending employees to training, conferences, or inter-office travel.

The key factor is the potential for one employee to injure another while operating a covered auto in the course of employment.

3. Special considerations:

• Interaction with Workers' Compensation: It's crucial to understand that the CA 20 55 endorsement does not replace or affect workers' compensation coverage. Workers' compensation is generally the exclusive remedy for an employee injured on the job by the employer. However, in many states, workers' compensation being the exclusive remedy applies only to the employer, not to a negligent fellow employee. This means an injured employee might still be able to sue their co-worker for negligence, and that's where the CA 20 55 provides protection for that co-worker.
• State Laws Vary: The ability for an employee to sue a fellow employee (often called "co-employee suits") varies by state. Some states permit such lawsuits, while others restrict them or only allow them in cases of gross negligence or intentional acts. The necessity and value of this endorsement can depend on these state-specific laws.
• Not a Substitute for "Employees as Insureds": The CA 20 55 specifically addresses the fellow employee exclusion. It should not be confused with an "Employees as Insureds" endorsement (like CA 99 33), which provides broader insured status to employees, for instance, when they are driving their personal vehicles on company business.
• Alternative Endorsement CA 20 56: There is a related endorsement, CA 20 56 Fellow Employee Coverage For Designated Employees/Positions, which allows the insured to provide this coverage only for specific employees or job titles listed in the endorsement, rather than all employees.
• Exclusions Remain: The CA 20 55 only deletes the fellow employee exclusion. Other policy exclusions, such as the "Employee Indemnification and Employer's Liability" exclusion, remain in effect.

4. Key information for agents and underwriters:

• Risk Assessment: Underwriters should consider the nature of the insured's operations. Businesses with frequent co-employee travel in company vehicles present a higher risk. Factors include the number of employees, vehicle usage patterns (e.g., carpooling, team driving), and the employer's safety programs and driver training.
• Pricing: Providing this coverage typically involves an additional premium, as it expands the scope of the policy. The charge may be per auto.
• Coverage Gap Identification: Agents should discuss this coverage with clients, especially those in industries with a higher likelihood of fellow employee auto accidents, to ensure they understand the potential gap created by the standard fellow employee exclusion. Explaining that workers' compensation may not fully protect an at-fault employee from a lawsuit by an injured co-worker is key.
• Underwriting Guidelines: Insurers will have their own underwriting guidelines for offering this endorsement. They may scrutinize the loss history related to employee auto accidents and the overall safety culture of the business.
• Clarity on Scope: It's important for both agents and underwriters to be clear that this endorsement is for bodily injury to a fellow employee; it does not typically extend to property damage or other types of liability. The endorsement specifically deletes the *fellow employee exclusion* related to *bodily injury*.