Mobile Equipment Coverage away from Insured Premises?

This question concerns the use of mobile equipment, specifically a golf cart. The golf cart was not on the insured's premises. An employee of the insured was transporting merchandise in a fair where the insured was exhibiting his product, and he struck a visitor to the fair with a gold cart owned by the insured. Since the insured failed to notify the company of the exhibition, and the golf cart is not specifically insured in the policy, we are wondering whether the CGL coverage applies to this accident?

New York Subscriber

If this incident involves the standard CGL form, there is no exclusion to prevent coverage for this incident. The CGL form provides very comprehensive coverage for the insured, and he does not need to notify the insurer of everything he does; such exposures are supposed to be picked up at audit time. The operations of the insured are covered unless specifically excluded by the policy language or an endorsement.

As for the golf cart, that is not required to be specifically insured under the CGL form; it is mobile equipment (based on the definition of mobile equipment in the CGL form) and the insured has coverage for its use anywhere unless the mobile equipment exclusion applies. In this instance, that exclusion would not be applicable. So, the insured has general liability coverage for the bodily injury claim due to use of the mobile equipment, the golf cart.

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