1. Forms
2. CA
3. CA-99-60

What the Form Is

The CA 99 60, titled "Audio, Visual And Data Electronic Equipment Coverage Added Limits," is an endorsement used with commercial auto insurance policies such as the Business Auto Coverage Form (CA 00 01), Auto Dealers Coverage Form (CA 00 05), and Motor Carrier Coverage Form (CA 00 20). Its primary purpose is to provide higher limits of physical damage coverage for audio, visual, and data electronic equipment that is permanently installed in a covered auto or is removable from a permanently installed housing unit designed for such equipment by the auto manufacturer. This endorsement addresses the often insufficient standard sub-limit (e.g., $1,000) provided in the base policy for such specialized and frequently expensive equipment.

Classes of Business It Applies To

This endorsement is relevant for a wide range of businesses that utilize vehicles equipped with valuable electronic systems. Examples include:

• Transportation and Logistics: Trucking companies or delivery services relying on GPS navigation, fleet management systems, and communication devices.
• Sales and Service Fleets: Businesses whose vehicles are equipped with mobile data terminals, specialized diagnostic tools, or sophisticated audio/visual presentation equipment.
• Contractors: Tradespeople who may have advanced communication or data equipment integrated into their work vehicles.
• Livery and Passenger Transport: Companies with vehicles that feature enhanced entertainment systems for passengers.
• Any business whose vehicles contain electronic equipment where the replacement cost exceeds the standard policy sub-limit.

Special Considerations

• Scheduled Equipment: The specific covered auto and the desired increased limit per loss for the electronic equipment must typically be shown in the Schedule of the endorsement or in the policy Declarations.
• Added Limit: The limit provided by this endorsement is in addition to the standard sub-limit for electronic equipment found in the base coverage form.
• Deductible: The Physical Damage Coverage deductible applicable to the covered auto will generally apply to losses involving equipment covered by this endorsement. Earlier versions of the form may have had a separate deductible, but the 10 13 edition typically aligns with the vehicle's comprehensive or specified causes of loss deductible.
• Permanently Installed or Designed for Removal: Coverage typically applies to equipment that is permanently installed in locations normally used by the auto manufacturer for such installations, or equipment designed to be removable from a permanently installed housing unit.

Key Information for Agents and Underwriters

• Identifying the Need: Agents should proactively discuss this coverage with clients who have vehicles with aftermarket or high-value electronic installations, as the standard policy limit is often inadequate. This includes GPS units, custom sound systems, video screens, and integrated data devices.
• Risk Assessment: Underwriters will need to assess the value of the equipment being scheduled to ensure the requested limit is appropriate and to price the endorsement accordingly. Clear descriptions of the equipment may be required.
• Coverage Gap Prevention: This endorsement is crucial for closing a potential coverage gap for expensive electronic equipment that is increasingly common in commercial vehicles. Failure to offer or secure this coverage can lead to client dissatisfaction in the event of a loss.
• Proper Scheduling: Ensuring that each vehicle needing the increased limit is properly scheduled with the correct corresponding limit is vital for coverage to apply as intended.
• Version Clarification: Be aware of the specific edition date of the CA 99 60 being used, as provisions (like deductibles) can change between editions.