Trailer Considered Property Not Covered

Our insured allowed their best and largest client to park a semi-trailer on their property. The semi-trailer was stolen. The client is looking to our insured to pay for the stolen trailer. (Under the best of conditions we would hope that the client has insurance for the trailer, but at this point that has not been confirmed. They are still looking to our insured to pay for the trailer). When we reported the claim, we anticipated that they would look to the Property of Others coverage and then determine coverage.

The insurer, however denied the claim directly to our insured stating that the trailer was a vehicle and not covered under their policy. Their policy however does not define “vehicle.” The company will not reword their denial, and it was confusing at best. First they state that the trailer was not attached to a vehicle, and they later state the trailer is a vehicle as their reason for denial. Our insured is very intelligent and honestly I find the letter unclear.