Mobile Equipment, the CGL Form, and the BAP
An officer of the insured company on occasion lends his riding mower to the company for maintenance of corporate grounds. Also, he loans a four-wheeler for the use of the company surveying crew on the job. If the riding lawnmower or the four-wheeler cause bodily injury or property damage to an innocent third party during use on company business, would the claim be a general liability claim or an auto claim?
West Virginia Subscriber
The lawnmower is mobile equipment, so any injury or damage that arises from its use will be covered under the terms of the CGL form. As for liability coverage due to use of the four-wheeler, it depends.
If the four-wheeler is subject to a compulsory or financial responsibility law or other motor vehicle insurance law in the state where it is licensed or principally garaged, it is considered an auto under the terms of the current CGL form and the current BAP. In that case, the BAP would apply to a claim based on the use of the four-wheeler. Of course, coverage under the BAP is for covered autos and the four-wheeler would have to have the correct covered auto designation symbol on the company auto policy in order to be considered a covered auto.
If the four-wheeler is not subject to such laws, and it is designed for use principally off public roads or fits some other part of the definition of mobile equipment, then the CGL form would apply.
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