Odor as a Physical Damage Loss

Our insured has a business auto policy. He mistakenly left a vacuum sealed frozen chicken in the vehicle for approximately four days when the temperature was about 90 degrees. An odor developed in the car. Are there any exclusions in the BAP that would apply?

Alabama Subscriber

There is no exclusion in the BAP that is applicable, but we wonder if there is a physical damage loss in this instance. The policy applies to loss to a covered auto and a loss is defined as direct and accidental loss or damage. So, the question is: is an odor a loss as defined?

We don't think so, but you may want to ask an attorney who is familiar with the law in your area to see if the courts there have considered an odor to be actual direct damage. Some courts have gone this way, especially with the Chinese drywall mess, but an odor in a car could probably be dispersed by opening the car windows and is not all-pervasive as is the Chinese drywall odor.

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