1. Forms
2. IH
3. IH-99-23

What the form is

The IH 99 23, titled "Theft From Unattended Vehicle Exclusion," is an endorsement used with Inland Marine insurance policies. Its primary function is to eliminate coverage for losses arising from theft of insured property from a vehicle that is left unattended. However, this exclusion has a key exception: coverage may still apply if, at the time of the theft, all the vehicle's doors, windows, and compartments were securely closed and locked, and there is visible evidence of forced entry into the vehicle.

Classes of business it applies to

This endorsement is typically used in conjunction with various non-filed Inland Marine coverage forms. It is relevant for any business that transports valuable property in vehicles and faces a risk of theft when those vehicles are unattended. Examples include:

• Contractors: Businesses that transport tools, equipment, or materials to job sites (e.g., construction equipment).
• Delivery and Courier Services: Companies whose operations involve leaving vehicles unattended during pickup or delivery.
• Sales Representatives: Professionals who carry samples, demonstration units, or other valuable business property in their vehicles.
• Businesses with Mobile Operations: Any enterprise where employees regularly use vehicles to transport goods or equipment essential to their work. For instance, a business that ships goods using its own vehicles or via common/contract carriers might see this endorsement on their Annual Transit Coverage. Similarly, it can apply to Installation Coverage Forms for contractors installing property.

Special considerations

The critical factor for this endorsement is the definition of "unattended" and the conditions under which the exclusion can be overridden. It's crucial for insureds to understand and implement security measures.

• Proof of Forced Entry: The requirement for "visible signs of forced entry" is paramount. If a vehicle is left unlocked, or if a theft occurs without clear evidence of a break-in (e.g., a window smashed, locks picked), coverage for the stolen items will likely be denied under this exclusion.
• Vehicle Security Protocols: Businesses should enforce strict protocols for drivers to always lock vehicles and secure all compartments when left unattended, even for brief periods.
• High-Theft Areas: The risk is significantly higher in areas known for vehicle break-ins. While the endorsement's terms remain the same, the likelihood of a claim being subject to this exclusion increases.

Key information for agents and underwriters

Agents and underwriters need to consider the following when dealing with this endorsement:

• Risk Assessment: The nature of the property being transported, its value, the typical routes taken, and the areas where vehicles are left unattended are key risk factors. Businesses with high-value, easily portable items are at greater risk.
• Coverage Gaps: Agents should clearly explain this exclusion to clients so they understand the limitations, particularly the need for evidence of forced entry. This helps manage expectations and encourages better security practices.
• Underwriting Guidelines: Underwriters may apply this endorsement more stringently for businesses with a poor loss history related to theft from vehicles or those operating in high-crime areas. They should inquire about the insured's security measures and driver training regarding vehicle and cargo security.
• Pricing: While this is an exclusion, the overall risk profile of the insured, including how they manage the exposure of theft from unattended vehicles, will influence the premium for the Inland Marine coverage. The presence of this endorsement acknowledges a specific risk that is being limited.
• Related Coverages: Ensure the client understands what other coverages might (or might not) apply, and if there are options to buy back some level of theft coverage if this exclusion is too restrictive for their needs (though this specific endorsement is designed to exclude it).