1. Forms
2. CR
3. CR-99-06

What the form is

The CR 99 06, titled PUBLIC OR LIVERY PASSENGER CONVEYANCE AND ON-DEMAND DELIVERY SERVICES EXCLUSION, is an endorsement to commercial automobile insurance policies. Its primary function is to remove coverage for certain risks associated with using insured vehicles for transporting passengers for a fee (livery conveyance) or for providing on-demand delivery services through digital platforms. This endorsement applies to various coverage parts, including Liability, Physical Damage, Medical Payments, and Uninsured/Underinsured Motorists Coverage, by adding a specific exclusion for these activities.

Classes of business it applies to

This endorsement is relevant for any commercial insured whose vehicles could potentially be used for activities such as:

• Ride-sharing services: Where an insured or their employee uses a company vehicle to transport passengers for services like Uber or Lyft.
• On-demand delivery services: Where an insured or their employee uses a company vehicle to deliver goods, food, or other items for platforms like DoorDash, Uber Eats, or Grubhub.

It is typically used when the Named Insured's primary business operations, as declared in the policy, do not include these types of transportation or delivery services. For example, a construction company whose employee uses a company truck to make deliveries for an app-based service during non-working hours would see coverage excluded for incidents occurring during that delivery activity if this endorsement is attached.

Special considerations

• Logged-in status: The exclusion specifically applies when an insured is logged into a "transportation network platform" or "delivery network platform" as a driver, regardless of whether a passenger is actually in the vehicle or if goods are being transported at the moment of the loss.
• Exception for Named Insured's business: A crucial aspect of this endorsement is that the exclusion does not apply to business activities performed by an insured that are directly related to the Named Insured's business as listed in the Declarations section of the policy. For example, if a bakery (the Named Insured) uses its own van and employee to deliver its baked goods to customers as part of its declared business operations, this exclusion would not negate coverage for that specific delivery activity.
• Interaction with other forms: The existence of related forms like CR 99 04 (Public or Livery Passenger Conveyance and On-Demand Delivery Services – Other Insurance Condition) suggests that there might be ways to buy back some coverage for these excluded activities, likely subject to specific underwriting and rating.

Key information for agents and underwriters

• Risk Identification: Agents should proactively discuss with clients whether their vehicles are, or could be, used for ride-sharing or on-demand delivery services, even incidentally. This is crucial for avoiding coverage gaps.
• Underwriting: Underwriters use this form to manage the unique and often higher risks associated with livery and on-demand delivery services, which may not be contemplated in standard commercial auto rates. The presence of such exposures without appropriate endorsements or rating can significantly impact loss ratios.
• Coverage Gaps: If this endorsement is attached, insureds must understand that any claim arising from the excluded activities will likely be denied. If an insured intends to engage in such activities and desires coverage, alternative solutions such as a public auto policy or specific TNC insurance products should be explored.
• State Variations: While this is an ISO form, its adoption and specific wording might vary by state, or states might have their own specific endorsements addressing these exposures (e.g., forms used by Commonwealth Automobile Reinsurers (CAR) in Massachusetts).