Vehicle Coverage under CGL Form

August 17, 2015

I have an insured that is purchasing a vehicle to be raffled off over the summer. They will own the vehicle for about three months but are not planning to register the vehicle during this time. At the end of the three months, they will pick a winner and transfer the title to the winner. The vehicle will be trailered to and from various events in the area over the summer for tickets to be raffled off at these events.

Would the insured's commercial general liability policy provide liability coverage for this vehicle or will the insured need to purchase a commercial automobile policy to obtain liability coverage for the vehicle?

Illinois Subscriber

The CGL form excludes coverage for BI and PD arising out of the use of any auto operated by or rented or owned or loaned to any insured. Since the insured is purchasing the vehicle and owning it for three months, that exclusion is going to apply. It would be better and less troublesome for the insured if a claim were to arise, if he bought an auto policy, if such a short-term policy can be found.



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