All-Terrain Vehicle Coverage under CGL Form?

Q

This question deals with a CGL policy purchased in an individual's name. The insured personally owns a four-wheel all-terrain vehicle, which is used in business, but also occasionally for pleasure.

The situation is this: the insured owns a large amount of land and has purchased a four-wheel all-terrain vehicle for his farm manager to patrol the land. Both the four-wheel ATV and the liability policy are solely in the name of the insured. Occasionally, the insured will use this vehicle for hunting purposes, and he questioned whether his CGL policy would provide him liability protection at such time. The ATV is not registered for road use and, in fact, can not be registered for road use.

We have discussed this matter in our office and felt there would be coverage on the vehicle, whether it was being used for business purposes or pleasure. What is your opinion?

Louisiana Subscriber

A

We agree with your interpretation. You stated that the vehicle is not registered for road use, and that it cannot be registered for road use. This, plus the fact that the insured maintains this four-wheeler for use solely on the premises he owns, makes the vehicle fit the definition of mobile equipment. It is true that an auto is defined on the CGL form as a land motor vehicle that is designed for travel on public roads and this four-wheeler can fit that description. However, the CGL's definition of auto also states that “auto does not include mobile equipment”. We take this to mean that if a vehicle happens to fit the definitions of both an auto and mobile equipment, it must fall into the mobile equipment category. Your description of the four-wheeler fits this stance, and coverage for liability because of the mobile equipment definition is under the CGL form.

 

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