Care, Custody, or Control Exclusion Prevents Coverage for Trailer Damage

Our insured was using a nonowned trailer. His employee dropped the trailer while attaching it to the tractor owned by our insured and missed the concrete pad. This caused the trailer to sink into the mud, resulting in damage in the amount of $4,000 to the trailer. The insured has a business auto policy and a general liability policy, both with the same carrier. Which policy would provide coverage for the damage to the trailer?

Oklahoma Subscriber

The standard CGL form and the standard business auto liability policy will not apply to this property damage claim because of the care, custody, or control exclusions that both policies have.

There may be coverage under the physical damage coverage section of the auto policy, but you need to see what the covered auto designation is for that coverage. The physical damage insuring agreement applies to loss to a covered auto or its equipment. So, if the trailer is designated through the appropriate symbol as a covered auto for physical damage coverage, there is coverage here; if not, there is no coverage.

 

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