1. Forms
2. CA
3. CA-23-09

What the form is

The CA 23 09, titled "Motor Carriers – Insurance for Non-Trucking Use," is an endorsement attached to a commercial Business Auto Policy (BAP). Its primary purpose is to provide liability coverage for an owner-operator's truck when it's used for purposes other than trucking operations under dispatch for a motor carrier. This is often referred to as "bobtail" or "non-trucking use" (NTU) coverage. The endorsement specifically clarifies that the Business Auto Policy's liability coverage is modified for the scheduled auto. It adds exclusions stating that the insurance does not apply when the covered auto is used to carry property in any business or while used in the business of anyone to whom the auto is rented. Furthermore, it amends the "Who Is An Insured" section of the BAP so that it does not include anyone engaged in the business of transporting property by auto for hire who is liable for the named insured's (the owner-operator's) conduct, effectively excluding the motor carrier the owner-operator is leased to from coverage under this endorsement for non-trucking uses.

Classes of business it applies to

This endorsement is specifically designed for independent truck owner-operators who lease their vehicles and driving services to a motor carrier. These truckers operate under the motor carrier's authority when hauling loads but need separate coverage for personal use of their truck or when operating the truck outside the scope of the motor carrier's business. Common scenarios include:

• Driving the tractor without a trailer (bobtailing) after dropping off a load and heading home or to another location for personal reasons.
• Driving the tractor with an empty trailer (deadheading) for personal reasons or between assignments when not under dispatch.
• Using the truck for personal errands or travel on days off.

Real-world example: An owner-operator completes a delivery for ABC Trucking Inc. and is now off-dispatch. They decide to drive their tractor to a repair shop for personal maintenance and are involved in an accident. The CA 23 09 endorsement on their Business Auto Policy would be triggered because this is a non-trucking use of the vehicle. If the same owner-operator used their truck on a weekend to help a friend move personal belongings (not for compensation), this would also typically fall under non-trucking use.

Special considerations

• Coverage Gap Filler: This endorsement is critical because a motor carrier's primary liability insurance generally only covers the owner-operator when they are operating under dispatch and for the motor carrier's business purposes. The CA 23 09 fills the gap for personal or non-business operational exposures.
• Distinction from "Bobtail Insurance": While often used interchangeably with "bobtail insurance," CA 23 09 provides coverage for "non-trucking use," which is broader and can include operating with an empty trailer for personal reasons, not just when the tractor is without a trailer.
• Strict Exclusions: A key aspect is the exclusion of coverage if the auto is used to carry property in any business or while used in the business of anyone to whom the auto is rented. This means if the owner-operator uses their truck for a side job hauling goods, even if not under dispatch from their primary lessee, this endorsement will not provide coverage.
• Motor Carrier Not an Insured: The endorsement specifically modifies the "Who Is An Insured" provision to ensure the motor carrier leasing the truck is not covered under the owner-operator's BAP for these non-trucking uses.
• Policy Wording Variations: While CA 23 09 is an ISO standard form, some insurers might use their own manuscript endorsements. It's crucial to review the exact policy language.

Key information for agents and underwriters

• Risk Assessment: Underwriting this endorsement requires a clear understanding of the owner-operator's lease agreement with the motor carrier and the nature of their operations. The line between "business use" (covered by the motor carrier) and "non-trucking use" can be ambiguous and is a frequent source of coverage disputes.
• Educating the Insured: Agents must clearly explain the limitations, especially the exclusion for carrying property in any business. Owner-operators need to understand that this policy does not cover them if they decide to, for example, pick up an independent load outside of their lease agreement.
• Pricing Considerations: The premium reflects the more limited exposure of non-trucking use compared to primary trucking liability. However, even when bobtailing or deadheading, large trucks pose significant risks.
• Interaction with Motor Carrier's Policy: It is essential to understand how this endorsement coordinates with the motor carrier's insurance policy to prevent unintended coverage gaps or overlaps. The motor carrier's policy is generally primary when the truck is used in their business.
• Potential for Disputes: Determining whether an activity constitutes "non-trucking use" versus "business use" for the motor carrier can be complex, especially in scenarios like driving to or from a terminal or maintenance facility. Clear communication and documentation are vital.