Unloading of Vehicle is not Direct Physical Loss

The insured has a Business Auto Policy with a tractor and a trailer listed on it. The tractor has symbol 7 for collision coverage and both the tractor and the trailer have symbols 7, 8, and 9 for property damage; the tractor has collision coverage and the trailer which was attached to it does not. The vehicle was involved in a collision which it needed to be towed from, and the trailer needed to have its contents unloaded by the tow company. Would there be coverage under the BAP for the unloading of the trailer?

Connecticut Subscriber

The coverage under the BAP is for loss to a covered auto or its equipment. And loss is defined as a direct and accidental loss or damage. Unloading the contents from a trailer is not considered a loss as defined in the BAP since this does not describe a direct physical loss to the trailer, and does not describe an accidental loss. So, there is no coverage for unloading the trailer.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis