Mobile Equipment used in Stunting Activity?

We insure a non-profit organization that uses miniature vehicles in parades and other promotional activities. The question has come up as to whether the mobile equipment exclusion on the CGL form would apply to a claim if one of these vehicles accidentally ran into someone and caused bodily injury or property damage. The cars would definitely not be racing or speeding, but are they engaged in a stunting activity? Or, should we be concerned about the auto exclusion? What is your opinion?

Ohio Subscriber

Auto, as defined on the CGL form, would most probably not include this type of vehicle. An auto is a land motor vehicle designed for travel on public roads or a vehicle that is subject to a compulsory or financial responsibility law. A miniature car may be engaged in parading on a public road at the time of an accident, but it cannot be said to be designed for travel on a public road. As for being subject to a financial responsibility law, that would depend on how the state treats such vehicles. But, since the cars are not designed for travel on public roads and since there is no danger of such cars being involved in what would be considered a normal traffic accident, it is highly unlikely that the miniature cars would be subject to state auto financial responsibility laws. Therefore, the auto exclusion would not apply.

The miniature vehicles more closely fit the definition of mobile equipment on the CGL form. They are land vehicles designed for use principally off public roads, or vehicles maintained primarily for purposes other than the transportation of persons or cargo. It is true that persons do drive in these vehicles, but it would be a stretch of the imagination to think of such vehicles as maintained primarily for the transportation of persons. The purpose of the miniature vehicles is not really transportation, but for display or promotional activities.

The mobile equipment exclusion eliminates coverage for injury or damage arising out of the use of mobile equipment in stunting activity. Absent any policy definition of stunting activity, the insured is entitled to the common dictionary usage of the term. Merriam Webster's Collegiate Dictionary, Tenth Edition (1997) defines a stunt as an unusual or difficult feat requiring great skill or daring. Implicit in this definition is the concept of danger or extensive training. It does not seem daring, dangerous, or difficult to drive a miniature car down a parade route. So, the mobile equipment exclusion would not apply to this type of exposure. It may be that some insurer would require a specialized policy to cover this risk, but there is no exclusion on the CGL form that would prevent coverage.

 

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