Collision Damage due to Cargo Shift?
Q
I'm handling a claim in which cargo was being transported by a tractor-trailer. The cargo in the trailer shifted and pulled the restraining straps. As a result, the inside of the trailer where the straps were attached buckled, and the trailer was damaged.
This policyholder carries specified causes of loss and collision coverage. The company does not carry other than collision (comprehensive) coverage. The insured is claiming that this is a collision loss, but I don't think it is. What's your opinion?
California Subscriber
A
From your description, this does not appear to fall within the category of collision. The business auto policy defines “collision” as the covered auto's collision with another object or its overturn. The first meaning infers one object striking another. The majority of courts don't require any particular degree of violence, so long as the damage is inflicted by some degree of contact.
The situation you describe involves a shifting of the cargo, but it does not involve the cargo striking the inside of the trailer. Therefore, the buckling of the trailer interior that was caused by the restraining straps does not fit within the description of collision.
This premium content is locked for FC&S Coverage Interpretation Subscribers
Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.
- Quality content from industry experts with over 60 years insurance experience, combined
- Customizable alerts of changes in relevant policies and trends
- Search and navigate Q&As to find answers to your specific questions
- Filter by article, discussion, analysis and more to find the exact information you’re looking for
- Continually updated to bring you the latest reports, trending topics, and coverage analysis
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected]