Racing or Demolition Exclusion not Applicable to Emergency Vehicles

Our insured is involved in a motorsports/race track program. There usually are special vehicles at the race tracks that are not involved in the racing contests, but are utilized in the event of an emergency. These vehicles are ambulances, tow trucks, and fire trucks. In the event of an accident, these vehicles enter the track area to remove people and vehicles. A question has arisen in this office concerning the physical damage coverage for these vehicles.

The business auto policy (BAP) excludes physical damage coverage for loses to covered autos while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. Clearly, this exclusion takes away coverage if the covered autos are actually racing. However, if the vehicles are just used to enter the race track and remove another vehicle or a person and they are damaged somehow, would the exclusion still apply?

Florida Subscriber

The vehicles you describe here would not be affected by the exclusion on the BAP even if they are on the race track and an accident occurs.

The exclusion has to be read in its entirety and then applied as narrowly as is reasonable since that is how exclusions are meant to be applied. This racing exclusion is for vehicles that are used in any racing or demolition contest or stunting activity or while practicing for such a contest or activity. This means the vehicle has to be involved, actually or potentially, in the racing or demolition contest or stunting activity. The emergency vehicles you describe do not do that. They are not there to race or be involved in any demolition or stunting activity. So, they do have the physical damage coverage provided by the auto policy.

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