The Auto Dealers program supported by the Insurance Services Office was approved for use in Texas in 2013. The program replaced the ISO Garage program, although many insurers may choose to continue using the Garage program by simply not amending their filing with the Texas Department of Insurance. See the InfoCentral commentary on the ISO Garage program.
This policy guide explains the 2013 edition of the ISO Auto Dealers Coverage Form (Edition 10 13). Dealers are the only prospects for this form - see "Eligibility" below.
The Policy Coverages section of this policy guide concentrates on the major coverage sections in the Auto Dealers Coverage Form - see "Coverage Features" below. The Forms and Endorsements section briefly reviews all of the standard available endorsements.
The garage section of the ISO auto manual describes the following types of dealerships which are eligible for the Auto Dealers Coverage Form:
- Franchised private passenger auto dealer (with or without any other type of franchise) NOTE: "Franchise" refers to a sales contract the dealer maintains with a manufacturer.
- Franchised truck or truck-tractor dealer (with or without any other type of franchise except a private passenger auto franchise.)
- Franchised motorcycle dealer including all two-wheeled cycle vehicles (no private passenger or truck franchise)
- Franchised recreational vehicle dealer (no private passenger, snowmobile or residence type mobile home trailer franchise)
- Other franchised self-propelled land motor vehicle dealer (including snowmobile dealer)
- Non-franchised dealer of any type described above
- Franchised and non-franchised residence trailer dealer
- Franchised and non-franchised commercial trailer dealer
- Equipment and implement dealer (no other franchise)
If a type of business is not listed here as eligible, then it is not eligible for coverage on a garage coverage form.
The Auto Dealers Coverage Form includes the following forms of coverage:
General Liability for auto dealer operations, including:
- Premises Liability arising out of the ownership and use of premises where an auto dealer business is conducted;
- Operations Liability for operations which are necessary or incidental to the auto dealer business, including activities away from the premises;
- Products Liability for products sold or distributed by the auto dealer business; and,
- Completed Operations Liability for services performed by the auto dealer business.
- Contractual Liability for liability of others assumed by the insured in agreements related to the auto dealer business;
- Personal and Advertising Injury Liability, covering named "offenses" arising out of auto dealer operations;
- Medical Payments coverage for accidents occurring on the auto dealer premises or arising out of auto dealer operations;
Auto Liability and Physical Damage with provisions for "blanket" coverage on all autos related to the dealership;
Garagekeepers for damage to customers' autos in the care, custody or control of the garage business for service, repair or storage; and,
Acts, Errors or Omissions Liability Coverages covering claims arising out of a dealer's wrongful acts, errors or omissions in conducting business.
The following additional coverages are available by endorsement:
CA 99 03 (Auto Medical Payments Insurance)
Adds automobile medical payments coverage to the policy.
CA 22 64 (Texas Personal Injury Protection)
Adds automobile personal injury protection (PIP) coverage to the policy. Must be attached unless rejected in writing.
CA 21 09 (Texas Uninsured/Underinsured Motorists Insurance)
Adds Uninsured/Underinsured Motorist coverage to the policy. Must be attached unless rejected in writing.