Dec Page

The question of the month pertains to miscellaneous vehicles. Such vehicles include golf carts, motorized wheelchairs, snowmobiles, ATVs, and riding mowers. Insurance for these types of vehicles can be issued using the homeowners policy, the auto policy and inland marine policies. However, the coverage for these vehicles can be confusing. For example, where is the best coverage found for an insured's needs? Are multiple forms needed in order to close any coverage gaps? What exposures do the policies and endorsements apply to, and what are the restrictions in the coverage grants?

For answers to these questions and for information on the various endorsements and policies that can cover the risk exposures of miscellaneous vehicles, see the designated article in the Bulletins.

The court cases discussed in the Dec Page concern workers compensation payments, the meaning of “pollutant”, and the continuing question over what the phrase “arising out of” means. In the workers comp case, the Supreme Court of Indiana had to decide if the insured was responsible for paying for the injuries suffered by an employee of an independent contractor who had failed to get any workers compensation coverage. Indiana law imposes liability upon a person who hires a contractor without verifying that the contractor carries workers compensation insurance for the injury or death of any of the contractor's employees. And, the insured in this instance failed to verify.

The pollution case revolves around the question of whether natural gas is a pollutant as defined in a liability policy. The injured person was exposed to natural gas and filed a claim. The insurer argued that natural gas was a pollutant as defined in the policy and the pollution exclusion prevented any coverage for the claim. The Court of Appeals of Georgia reviewed the issue and provided its answer.

In the final case, the Court of Appeals of New York added its opinion on the issue of the meaning of the phrase “arising out of”. A party was added to a liability policy as an additional insured “only with respect to liability arising out of” the named insured's ongoing operations. When a worker was injured on the job, the court had to decide if the facts showed that the additional insured was covered because the injury arose out of the named insured's ongoing operations.

There is also some information in the Dec Page on recent laws from several states. These laws pertain to coverage and cancellation issues from Virginia, Rhode Island, New Hampshire, and Colorado.

Questions and Answers

Does the wording on BP 06 01 negate the exception allowing coverage for consumed food in BP 05 77? See BOP Coverage for Liability Claim Based on Food Illness. What is the best way to handle covering gasoline in storage tanks on a BOP? See Coverage for Gasoline in Underground Storage Tank. When does exclusion h. under a Habitational Association Directors and Officers Liability endorsement apply? See Directors and Officers Liability Exclusion Prevents Double Recovery.

Is an insured required to submit a proof of loss without the insurer revealing the cause and origin of the loss? See Loss Conditions Selection of Property Policy and Duty of Insured. What is the time limit for submitting a commercial property claim? See Prompt Notice of Loss in Question. Are tools stored in a locked trailer owned by the insured's son-in-law considered in the insured's care, custody, or control? See Care, Custody, or Control of Tools at Issue in Theft Loss.

Current Garage Policy Review

The most recent version of the garage policy, CA 00 05 03 10, is reviewed and analyzed in this month's Bulletin. The introductory article covers the framework underpinning the garage coverage, that is, the symbols for covered autos, the conditions affecting the coverage, and the definitions. See Garage Policy.

AAIS Agribusiness Commercial General Liability Coverage

AAIS, the American Association of Insurance Services, has developed a standardized general liability form specifically for agribusinesses. The form includes coverage for educational and recreational farm activities for which the insured is compensated, otherwise known as “agritainment.” See AAIS Agribusiness Commercial General Liability Coverage.