Care, Custody, or Control of Tools at Issue in Theft Loss

July 13, 2010

Our client is insured under CP 00 10 04 02 and CG 00 01 12 07.The insured and his son-in-law were doing a few small construction projects to the insured's building. Tools that belonged to the son-in-law and that were stored in a locked trailer located on the insured's property were stolen. The trailer belonged to the insured's son-in-law. Were the tools under the insured's care, custody, and control?

I am certain the CGL exclusion will apply, but am not so sure about the coverage agreement for personal property of others in the insured's care, custody, or control in the Building and Personal Property Coverage form. The property was stored at our insured's location. However, I am not so certain that control was exclusive. 

Oregon Subscriber

From what you describe, it does not sound like the tools were under the insured's control but that the son-in-law had complete access to them whenever he wanted and could lock them up in the trailer he owned. So, there would be no coverage under the CP 00 10. As for the CG 00 01, if the insured is somehow held liable for loss, the CGL form has no exclusion that would prevent coverage. Since the tools were not in the care, custody, or control of the insured, that exclusion is not applicable.

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