Insurance coverage for the loss of property in a moving trailer

Coverage Q&A: A fire damaged a moving company trailer containing the belongings of others while in the insured's custody.

A fire damaged a moving trailer and its contents when the insured was conducting repairs. (Photo: Shutterstock)

Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts. 

Editor’s Note: This week’s question concerns a moving company trailer containing personal belongings damaged in a fire.

Question: Our insured has a motor carrier policy and a CGL policy for their trucking business in Pennsylvania. A moving company was in the process of moving a customer’s belongings in a trailer when the trailer was damaged en route. The moving company brought their trailer to our insured to repair. While the insured was welding the trailer, it caught on fire, damaging the trailer and the personal belongings inside the trailer.

We are wondering whether this would fall under the CGL policy or the auto policy? On the other hand, could this qualify as a property loss for the damage of others’ property in your care? Would the care, custody, control exclusions apply to the trailer and the personal belongings?

— Pennsylvania Subscriber

Analysis: Not all losses are clearly determined as to which coverage applies, and this is especially true when trailers are involved. Will the loss be covered under the auto policy, the CGL, or the property policy? Or are portions of the loss covered by more than one coverage form?

Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.

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