Masonry Magazine September 1968 Page. 29
?WHAT NOT COVERED.
by Walter T. Derk-MCAA Insurance Consultant
A series of articles composed of a concise summary of principal hazards excluded or omitted from the newly revised liability insurance policies. Designed to bring the fine print into better focus.
MASONRY is pleased to be able to bring you this second series of articles on insurance by Walter T. Derk, MCAA's Insurance Consultant. Mr. Derk's book, "Insurance For Contractors," is now in its fourth printing with over 30,000 copies in circulation.
PART V
COMPREHENSIVE AUTOMOBILE LIABILITY
THE BASIC POLICY
Following the procedure we have just concluded for General Liability hazards, we shall consider three aspects of the new Comprehensive Automobile Liability policy in order, (1) the insuring agreement, (2) policy definitions, and (3) specific exclusions. Again, if the first two tests are passed and there is no specific exclusion applicable, coverage exists.
THE INSURING AGREEMENT
This determines the subject matter as damages because of bodily injury or property damage "caused by an occurrence and arising out of the ownership, maintenance or use, including loading and unloading of any automobile ". Again, a very broad statement which we shall treat as a limitation, since we have established that this policy is not going to pay for anything other than a legal obligation for bodily injury or property damage because of an automobile exposure.
Example No. 1
Company A's employee unloaded some lumber from a truck and carried it to the third floor of a building under construction, in the process causing damage to finished walls and injuring another tradesman working nearby. Doubtful coverage, probably none at all if the workman paused en route to put such lumber down once unloaded; at some point covered loading and unloading operations terminate, thereby becoming General Liability exposures, not related to the automobile policy at all. Circumstances dictate where one policy leaves off and the other picks up. Practical solution: Carry both Comprehensive Automobile Liability and Comprehensive General Liability insurance in the same company and at identical limits of liability, in which case it is truly academic which applies here.
Example No. 2
Company A performed work under a contract which called for indemnification of a property owner, including claims arising from automobiles and trucks operated by said owner on the plant premises. Company A's employee was struck by such a vehicle operated by the owner, whereupon he sued for bodily injury. The owner, in turn, pointed to the indemnification agreement and demanded defense and payment by Company A. No coverage; this is not legal liability arising from ownership, maintenance or use of an automobile by the named insured, but rather a contractual obligation. Practical solution: Covered under specific contractual liability endorsement or blanket contractual liability endorsement to the Comprehensive General Liability policy. May be covered under an Umbrella Excess Liability policy, subject to the self-insured retention.
POLICY DEFINITIONS
The definitions here are numerous and have much more to do with determination of coverage than they do in the Comprehensive General Liability form. Actually, most of the exclusions and limitations in the auto policy occur here as precise definitions of exactly (a) who is covered, (b) what is covered and (c) under what circumstances. All are complicated and would require a great number of words to illustrate specifically. The list includes:
Automobile
Automobile Business
Bodily Injury
Damages
Excess Insurance
Named Insured
Non-Owned Automobile
Occurrence
Owner Automobile
Policy Territory