June 17, 2014

Our insured carries a commercial auto policy (garage policy). It has collision and comprehensive coverage. Our insured owns an open lot that is used to park vehicles for long term periods. Within the lot they found a rat infestation and they decided to inspect each and every vehicle they have in the lot. They found that about 50% of the vehicles show signs of rat droppings and rat urine, inside the vehicle engines. As a result they had to clean the engines of those vehicles. The insured decided that in order to prevent further damages, he should hire an expert to fumigate the premises. He also decided to put some kind of preventive pill inside the vehicles in order to avoid future damages.

The insured argues that the insurance company should pay for the following expenses: fumigation of the premise and pills that were placed inside the vehicle to avoid future infestations. He argues that this should be covered because the policy states under the duties in the event of an accident section that the insured should take all the reasonable steps to protect the covered auto from further damage.