Mobile Equipment Exclusion Applicable to 4-Wheeler Rally?

Our insured is the chamber of commerce for a small rural community. The insured is sponsoring an event in which there will be a 4-wheeler rally. A 4-wheeler is a small vehicle about the size of a snowmobile and is used to travel on rural property. In that rally, there will be an event in which individuals bring their own 4-wheeler and they travel through woods for a timed event.

The mobile equipment exclusion on the CGL form applies to bodily injury or property damage arising out of the use of mobile equipment in, or while in practice for, or while being prepared for any prearranged racing, speed, demolition, or stunting activity. But since our insured is not really using a 4-wheeler and is only promoting the rally, is the exclusion going to apply if someone gets hurt or some property is damaged?

New York Subscriber

The mobile equipment exclusion refers to bodily injury or property damage arising out of the use of mobile equipment, and it does not limit the applicability of the exclusion to use by the insured. This means that if any bodily injury or property damage claim is made because anyone used mobile equipment in a race or stunting event, an insurer can apply the exclusion to deny coverage.

Specialized market coverage for this event would be the better way to cover this exposure.

 

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