1. Forms
2. CA
3. CA-20-56

What the Form Is

The CA 20 56, titled "Fellow Employee Coverage for Designated Employees/Positions," is an endorsement used with commercial auto insurance policies. Its primary function is to selectively modify the standard "Fellow Employee Exclusion." This exclusion typically negates coverage for bodily injury sustained by an employee of the insured if the injury occurs during employment and is caused by another employee (a "fellow employee"). The CA 20 56 endorsement allows the insured to "buy back" this coverage, but it is specifically limited to situations where the injury is caused by an employee who is explicitly named, or by an employee holding a job title or position that is listed in the schedule of the endorsement. Essentially, it carves out an exception to the exclusion for a pre-defined subset of employees.

Classes of Business It Applies To

This endorsement is suitable for businesses where there is a recognized risk of employees injuring one another while operating company vehicles, but the employer wishes to provide this specific coverage only for certain roles or individuals, rather than for all employees. Examples include:

• Construction companies: May wish to provide this coverage for supervisors or foremen who regularly transport crews, but not for all crew members.
• Trucking or delivery companies: Might designate specific experienced drivers or team leaders for whom this coverage would apply, particularly if they often operate with a partner or assistant.
• Businesses with distinct operational roles: Where only certain positions involve driving with other employees in a capacity that might lead to such incidents.

Special Considerations

• More Restrictive Option: This endorsement is a more limited form of fellow employee coverage compared to an endorsement like the CA 20 55 (Fellow Employee Coverage), which typically deletes the exclusion for all employees.
• Accurate Scheduling is Crucial: The effectiveness of this endorsement hinges on the accuracy and completeness of the schedule listing the designated employees or positions. If an employee who is not listed (or not in a listed position) causes an injury to a fellow employee, the standard fellow employee exclusion will likely still apply.
• Regular Updates Needed: Businesses must diligently update the schedule as employees change roles, leave the company, or new individuals are hired into designated positions. Failure to do so could result in unintended coverage gaps.
• No Impact on Other Exclusions: It's important to note that this endorsement generally does not affect other policy exclusions, such as the Workers' Compensation and Employers' Liability exclusions. Claims that fall under workers' compensation would still be handled according to those laws and policy provisions.

Key Information for Agents and Underwriters

• Needs Analysis: Agents should work closely with insureds to identify if there's a genuine need for this coverage and, if so, which specific employees or positions warrant being scheduled. This involves understanding the insured's operations and potential intra-employee risks during vehicle use.
• Risk Assessment: Underwriters will need to evaluate the risk associated with the specific employees or positions designated on the schedule. Factors such as driving records, experience, and the nature of their duties (e.g., frequency of driving with other employees) will be relevant.
• Pricing: The premium for this endorsement will likely be influenced by the number and risk profile of the designated employees or positions. It offers a potentially more cost-effective solution than a blanket removal of the fellow employee exclusion.
• Clear Communication: It is vital for agents to clearly explain to the insured that coverage is strictly limited to the employees or positions scheduled. This manages expectations and prevents misunderstandings at the time of a claim.
• Alternative to Broader Coverage: This endorsement can be a useful tool when an insured wants to address a specific exposure related to certain employees without incurring the cost of the broader CA 20 55 endorsement.