What it does
The business auto form has no built-in trailer interchange coverage. CA 23 98 adds it: the insurer pays sums the insured legally must pay as damages because of "loss" to a trailer the insured does not own, or its equipment, under the coverages for which a premium is shown. The schedule offers:
ISO's 2026 multistate forms revision (CA-2026-OFR26) introduces a 09 27 edition of this form, approved for policies effective on or after September 1, 2027 in states where it has been adopted; the prior edition remains in use until then and in states that have not adopted the revision.
- Comprehensive (any cause except collision or overturn);
- Specified causes of loss (fire, lightning, explosion; theft; windstorm, hail, earthquake; flood; mischief or vandalism; sinking, burning, collision or derailment of a conveyance carrying the trailer);
- Collision; and narrower fire or fire and theft options.
Each is limited to the least of actual cash value, cost of repair or the scheduled limit, less a deductible per trailer. The insurer defends suits for covered loss, and supplementary payments (bonds, expenses, court costs, interest) are outside the limit.
Who needs it
Carriers that swap or pull trailers belonging to other carriers, shippers or leasing companies, where the interchange agreement makes the carrier liable for damage while the trailer is in its possession.
Quoting notes
Get the maximum value of any one non-owned trailer and how many are in the insured's possession at once. On the motor carrier form, interchange is handled by symbols 69 and 70; CA 23 30 has its own interchange schedule; CA 23 13 gives fire or fire and theft only.
