CA 20 01: Lessor Additional Insured and Loss Payee Explained

CA 20 01 addresses two interests a vehicle lessor commonly has in a commercial auto policy. It can make the scheduled lessor an insured for qualifying liability involving a designated leased auto and a loss payee for covered physical damage to that auto.

Those roles are different. Liability status concerns third-party claims. Loss-payee status recognizes the lessor's financial interest in the vehicle.

How does CA 20 01 protect a lessor?

For liability, the endorsement treats the scheduled lessor as an insured for qualifying bodily injury or property damage arising from acts or omissions of the named insured, its employees or agents, or other permitted users of the leased auto. The lessor and people connected with it are not turned into insured drivers for their own operation merely because the form is attached.

For physical damage, the endorsement provides loss-payee treatment for the lessor's interest in the scheduled auto. Payment remains subject to the policy's actual comprehensive, specified causes of loss, or collision coverage, deductibles, exclusions, and valuation terms.

The 10 13 form states that it modifies the Auto Dealers, Business Auto, and Motor Carrier coverage forms.^[1] A 2026 FC&S analysis identifies 11 20 as a later edition and explains its use when a lease requires direct primary insurance for the lessor.^[2]

Does the endorsement make every leased auto covered?

No. The designated leased auto must be accurately described and must have the relevant coverage under the policy. The endorsement does not create physical damage coverage where none is selected, and it does not erase policy exclusions.

The form also treats the scheduled leased auto as an owned covered auto for the coverage addressed by the endorsement. That classification can affect which coverage is primary, so the vehicle schedule and covered-auto symbols deserve careful review.

What should a business verify?

Compare the issued endorsement with the lease. Confirm the lessor's legal entity, each vehicle identification number or description, policy dates, required liability limits, physical damage deductibles, and any notice provisions.

If the vehicle owner is an employee rather than a commercial leasing company, ask whether an employee-as-lessor endorsement is more appropriate. If a rental company needs contingent protection when its customer fails to maintain insurance, that is a different exposure. CA 20 01 is aimed at the lessee's direct coverage for the scheduled lessor and autos.

This guide is for educational purposes and summarizes standard ISO policy concepts in original language. Form numbers and titles are used only for identification. Menlo Insurance Services is not affiliated with or approved by Insurance Services Office, Inc. Your policy, lease, and attached endorsements control. Talk to a licensed broker about your actual vehicles.