Vehicular Coverage under CGL Form

We are under the impression that unlicensed, off-road trucks are no longer covered by the commercial general liability (CGL) form. But recently at a seminar, one of the presenters said that vehicles not licensed and used off-road on private property are covered by the CGL form. Can you clarify this?

Pennsylvania Subscriber

The confusion is probably over the revision that the Insurance Services Office (ISO) made in the CGL form concerning the definition of auto. An auto is now defined as any other land motor vehicle that 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. This was done to help end the confusion over whether something like a tractor used on public roads or some type of farm implement that travels on public roads and has to be licensed would be treated as an auto or mobile equipment if it was involved in an accident.

The key point is that if the state requires the vehicle to be licensed and subject to the state financial responsibility law, the CGL form treats that vehicle as an auto; that is, the vehicle is not covered under the CGL form for a claim against the insured due to its use or ownership. The vehicle would be covered under the auto policy. In contrast, if the vehicle is not subject to the state's financial responsibility laws and is used off-road, that is considered mobile equipment and the CGL form will apply to claims due to the use or ownership of such a vehicle.

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