Public or Livery Conveyance Exclusion and Flower Delivery

Our insured loaned her vehicle—on one occasion only—to a flower delivery shop to deliver flowers. While making a delivery, the flower shop driver rolled the vehicle. I know the public or livery conveyance exclusion does not apply since it is meant for delivery or taxiing of people. Does the PAP PP 00 01 06 94 exclude physical damage or med pay coverage for this loss since the insured knowingly loaned the vehicle for business use?

Indiana Subscriber

Given that this was an isolated incident, we agree that the public/livery conveyance exclusion should not apply. However, we agree because there was no holding out to the general public that the insured's vehicle was for hire; the exclusion applies when the insured makes the vehicle available for use by the general public, or attempts to make a profit through the hiring out of his vehicle. The exclusion is not meant, as you imply, to apply only to delivery or taxiing of people; there are, in fact, many situations where this exclusion has been found to also apply to the transport or delivery of property.

This being said, based on the facts presented, we see no other reason coverage would be excluded for this loss.

 

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