1. Forms
2. CA
3. CA-24-02

What the form is

The CA 24 02, titled "Public Transportation Autos," is an Insurance Services Office (ISO) commercial auto endorsement. Its primary purpose is to modify the standard Business Auto Coverage Form (CA 00 01) for insureds whose business involves transporting passengers for a fee. Standard commercial auto policies often exclude or severely limit coverage for vehicles used as public or livery conveyances; this endorsement tailors the policy to provide the necessary coverage for such operations.

Classes of business it applies to

This endorsement is specifically designed for businesses that engage in transporting people. Examples include:

• Bus companies (e.g., scheduled route operators, charter bus services, tour bus operators)
• Shuttle services (e.g., airport shuttles, hotel shuttles, non-emergency medical transport, employee transport services)
• Other livery operations primarily focused on group passenger transport.

Real-world example: A company that operates a fleet of vans providing scheduled shuttle services between an airport and various city hotels would typically require the CA 24 02 endorsement on their commercial auto policy to ensure their passenger transport activities are properly covered.

Special considerations

• Modification of Exclusions: The Business Auto Coverage Form often contains an exclusion for "public or livery conveyance." The CA 24 02 endorsement modifies this exclusion, enabling coverage for autos used in public transportation.
• Regulatory Compliance: Businesses transporting passengers are often subject to specific state or federal regulations, including higher minimum liability insurance requirements. This endorsement helps insureds meet these obligations.
• Scope of Use: It's important to differentiate the use of this endorsement from others that might apply to more specialized passenger transport, such as taxi services, limousines, or transportation network companies (ridesharing), which may have their own dedicated endorsements.
• Contractual Requirements: Businesses operating public transportation may have contractual obligations with municipalities or private entities that stipulate specific insurance coverage, which this endorsement can help satisfy.

Real-world example: If a city grants a franchise to a private company to operate a local bus service, the contract will likely require specific auto liability coverage for passenger transport. The CA 24 02 endorsement would be essential for the bus company to meet these insurance requirements.

Key information for agents and underwriters

• Risk Assessment: Underwriting public transportation risks requires a thorough evaluation of factors such as:
  • Driver experience, training, and motor vehicle records.
  • Vehicle type, age, condition, and maintenance protocols.
  • Routes of operation (e.g., urban, rural, highway) and mileage.
  • Passenger capacity and safety features/procedures.
  • Hours of operation.
• Pricing and Premiums: Due to the increased exposure associated with carrying passengers, premiums for policies with this endorsement will generally be higher than for standard commercial auto risks. Rating may consider factors like the number of passenger seats, mileage, type of operation, and geographic territory.
• Coverage Adequacy: Agents must ensure that the liability limits selected are sufficient to cover potential claims involving multiple injuries to passengers, and also meet all applicable regulatory financial responsibility laws.
• Related Endorsements: Depending on the specifics of the operation, other endorsements might be necessary. For instance, the CR 99 04 (Public or Livery Passenger Conveyance and On-Demand Delivery Services – Other Insurance Condition) might be relevant in certain contexts.
• Clarity of Operations: It is crucial for underwriters to have a clear understanding of the insured's exact operations to ensure this is the most appropriate endorsement and that all exposures are correctly identified and rated.