Masonry Magazine September 1968 Page. 30
What? Not Covered!
(Continued from page 29)
Hired Automobile
Insured
Mobile Equipment
Private Passenger
Automobile
Property Damage
Trailer
Using this list we can refer to the policy jacket and coverage parts for reference if needed.
Occurrence
This is identical to the General Liability definition, being "an accident, including injurious exposure to conditions, which results during the policy period, in bodily injury or property damage neither expected nor intended from the standpoint of the insured."
This broader term replacing the old reference to only accidental injury is welcome, but not quite as important here as it is in extending coverage under the General Liability policy. Most automobile bodily injury or property damage liability claims are, after all, attributable to an easily discernible accident, but possible exposure to automobile fumes over a period of time might be one benefit of the broader term.
Persons Insured
There simply is no substitute for careful review of the definition of persons insured in the new policy format. While extremely broad, the definitions clearly exclude:
(1) Bodily injury to a fellow employee of the covered employer.
(2) The owner of a hired automobile.
(3) The owner of a non-owned automobile.
(4) An executive officer with respect to an automobile owned by him or a member of his household.
(5) Persons or organizations, other than the named insured, using trailers under specific circumstances.
(6) Anyone employed in the automobile business other than such a business operated by the named insured.
(7) Injury or damage arising out of a non-owned automobile used by any partnership or joint venture of which the insured is a partner or member, aside from one designated in the policy as named insured.
(8) If the named insured is a partnership, any automobile owned by or registered in the name of a partner.
The purpose of many of these limiting conditions, then, is to preclude automatic application of coverage under your policy to people in the automobile business and owners of automobiles or trailers who individually retain the obligation to insure their own vehicles rather than benefit from someone else's policy.
Private Passenger Automobile
This definition omits anything other than a four wheel private passenger or stationwagon type automobile. No automatic coverage, then, for motorcycles, motorscooters, motorbikes, snowmobiles, golf carts and similar apparatus.
Policy Territory
Coverage is limited to claims arising from ownership, maintenance or use of an automobile within the United States, its territories or possessions, or Canada. Note that although Mexico is a bordering country, special coverage must be secured to be adequately protected while operating any automobile in Mexico. The same is true, of course, anywhere outside the defined territorial limits.
Automobiles-Mobile Equipment
As indicated in the section on General Liability coverage, major changes have taken place in the definition of mobile equipment, which is covered free under the Comprehensive General Liability policy, contrasted with automobiles as defined covered under the Comprehensive Automobile Liability policy.
A simple and effective solution to drawing a line between these two rather complicated definitions is to be certain that both Comprehensive Automobile Liability and Comprehensive General Liability insurance is provided by the same insurance carrier and at identical limits of liability. If you do that, one or the other will cover bodily injury or property damage liability arising from use of such equipment.
Example No. 1
Company A supplied their salesmen with leased automobiles, one of whom did not own a second automobile of his own (nor did his wife). The salesman went to a purely social party, then drove a friend's car home, striking a pedestrian along the way. No coverage under the corporate policy. Practical solution: The salesman must secure his own defense from (1) the friend's policy (if any), (2) a separate Named Non-Owner policy or (3) Use of Other Automobiles endorsement added to Company A's policy at their discretion.
Example No. 2
In identical circumstances, the salesman's teen age daughter drove a boy friend's car, striking the pedestrian. No coverage under the corporate policy. Practical solution: The salesman must secure his own defense from (1) the auto owner's policy (if any) or (2) a separate Named Non-Owner policy. No coverage under the Use of Other Automobiles endorsement naming the salesman; the endorsement extends coverage to the named individual's spouse if resident of the same household, but not to others in the family. Addition of the
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