What it does
CA 23 01 adds one exclusion to Covered Autos Liability on the business auto and motor carrier forms: no coverage for bodily injury or property damage caused by the explosion of explosives the named insured makes, sells or transports.
Who sees it
Accounts that manufacture, distribute or haul explosives, blasting contractors carrying explosives to job sites, and fireworks distributors. The exclusion lets the insurer write the rest of the auto exposure while carving out the catastrophic explosion hazard. Massachusetts residual market risks use MM 23 04.
Selling notes
- A hazmat carrier subject to federal financial responsibility rules still needs the MCS-90 endorsement for the required limits; the MCS-90 obligates the insurer to pay final judgments for public liability regardless of policy exclusions, with a right of reimbursement from the insured.
- Look for specialty markets that cover explosion hazards in transit if the account hauls explosives regularly.
