1. Forms
2. CA
3. CA-DS-15

What the form is

The CA DS 15, often titled Business Auto Physical Damage Declarations, is a standard Insurance Services Office (ISO) form used in Commercial Auto Insurance. It is not a coverage form itself, but rather a crucial part of the policy that personalizes and summarizes the physical damage coverages selected by the named insured. This declarations page works in conjunction with the Business Auto Coverage Form (e.g., CA 00 01) and any applicable endorsements to define the scope of protection for damage to the insured's owned or hired vehicles.

Key information typically found on the CA DS 15 includes:

• A schedule of covered autos, specifically for physical damage purposes.
• The types of physical damage coverage selected for each auto (e.g., Comprehensive, Specified Causes of Loss, Collision).
• The applicable deductibles for each coverage.
• The limit of insurance or the method for determining the value of the covered auto (e.g., Actual Cash Value, Stated Amount).
• The premium allocated to each physical damage coverage.
• Information about any lienholders or loss payees with an interest in the covered autos.

Classes of business it applies to

This form is used for a wide array of businesses that own, lease, or hire autos and require insurance to cover physical loss or damage to these vehicles. Examples include:

• Contractors: Businesses with trucks, vans, and other vehicles used to transport tools, equipment, and personnel to job sites.
• Delivery Services: Companies that operate fleets of vehicles for delivering goods, such as courier services, food delivery businesses, and local freight carriers.
• Sales and Service Fleets: Organizations that provide company cars to sales representatives or service technicians who travel to meet clients or perform on-site work.
• Transportation Companies: Businesses involved in moving passengers or goods, though specialized forms might apply for certain motor carrier operations.
• Any business with owned autos: From small businesses with a single delivery van to large corporations with extensive vehicle fleets, if physical damage coverage is desired, this declarations page (or a company-specific equivalent) will be used.

Special considerations

• Accuracy is Critical: Ensuring all vehicles needing physical damage coverage are accurately listed with correct vehicle identification numbers (VINs), values, and desired coverages is paramount. Errors can lead to coverage gaps.
• Valuation: The basis of loss settlement (Actual Cash Value vs. Stated Amount) should be clearly understood. Stated Amount coverage is not a guaranteed payment of that amount; it's the lesser of the stated amount, ACV, or cost to repair/replace.
• Deductible Levels: Higher deductibles can reduce premiums but increase out-of-pocket expenses at the time of a loss. Businesses should choose deductibles that align with their risk tolerance and financial capacity.
• Coverage Selection: Businesses should carefully consider which physical damage coverages are necessary. Comprehensive covers most non-collision losses (theft, vandalism, glass breakage, fire, hail), Specified Causes of Loss covers only listed perils, and Collision covers impact with another object or overturn.
• Hired/Non-Owned Autos: While the CA DS 15 primarily details physical damage for owned autos, arrangements for hired or non-owned auto physical damage (if elected via endorsements like CA 99 16 or through specific coverage symbols on the main auto declarations) would be reflected in the overall policy structure.

Key information for agents and underwriters

• Risk Assessment: Underwriters will scrutinize the types of vehicles, their usage (radius of operations, business use class), driver records, garaging location, and prior loss history to assess the physical damage risk and determine appropriate pricing.
• Proper Classification: Correctly classifying vehicles by type and usage is essential for accurate rating.
• Verification of Values: Agents should assist clients in determining appropriate values for their vehicles, especially if Stated Amount coverage is chosen, to avoid underinsurance or overpayment of premium for coverage that won't exceed ACV at the time of loss.
• Endorsements: Agents and underwriters must ensure that any endorsements modifying physical damage coverage (e.g., for specialized equipment, rental reimbursement, or specific valuation clauses) are correctly identified and applied.
• Coverage Gaps: Review the insured's overall operations to identify potential gaps. For example, if a business frequently rents vehicles, ensuring hired auto physical damage is adequately addressed is important.
• Market Variations: While ISO forms provide a standard, some insurance companies may use their own proprietary declarations pages or modify ISO forms. It's important to be familiar with the specific insurer's forms.