In Transit Coverage for Plumber's Tools?

Q

Our insured plumber's van was broken into and tools usually carried therein were taken, valued at more than $2000. At the time of the break-in the truck was parked at the apartment complex of the employee's girlfriend for the night.

We contend the insured is entitled to $1000 under paragraph E.1.A. of commercial property special causes of loss form CP 10 30 04 02 as personal property in transit.

The claims manager has denied coverage stating that the in transit coverage is not designed for the insured's tools and business property; instead, that this is a coverage designed for the insured's goods while being shipped or delivered to another location.

We would appreciate your opinion.

Ohio Subscriber

A

Coverage under the commercial property policy's in transit coverage applies to personal property of the insured in transit more than 100 feet from described premises while in or on a motor vehicle. However, damage must be by one of the described perils. Loss caused by theft is only covered where theft is of an entire bale, case, or package by forced entry into a securely locked body or compartment of the vehicle. There must be visible marks of forced entry.

Therefore, tools left loose in the vehicle would not qualify. If all the tools were contained in a case, and that case was stolen by someone leaving visible marks of forced entry, you may have an argument that coverage applies. if the tools were not packaged or in a case, there would be no coverage.

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