CG 00 01–COMMERCIAL GENERAL LIABILITY
COVERAGE FORM
SECTION I–COVERAGES
COVERAGE A–BODILY INJURY AND PROPERTY DAMAGE
LIABILITY
2. Exclusions
This insurance
coverage does not apply to any of the following, except as noted:
g. Aircraft,
Auto, or Watercraft (04 13 change)
Coverage does not
apply to bodily injury or property damage when it arises out of owning,
maintaining, using, operating, loading, unloading, or entrusting to others any
aircraft, auto, or watercraft. This exclusion applies if any insureds owns,
operates, rents, or has loaned to it the aircraft, auto or watercraft and
applies even if a claim is due to any insured being negligent or engaged in
wrongdoing in supervising, hiring, employing, training, or monitoring of
others.
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Example: A watercraft the insured
owns and rents to its clients for pleasure use is not properly maintained and
a client is injured when the watercraft sinks. Coverage does not apply to the
injury.
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This exclusion
has five exceptions. It does not apply to:
- Watercraft that is on the shore that is part
of the premises the named insured owns or rent
- Watercraft the named insured does not own,
that is less than 26 feet long and that is not used to transport people or
property for a fee
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Example: Ollie at Ollie's Oriental
Grill rents a 22 foot long pontoon boat for an afternoon sales
presentation and cooks appetizers on a small charcoal grill. The grill causes
a fire. The guests move to the other side of the boat to get away from the
fire but the weight shift causes the boat to tip and several guests fall into
the water. A few are injured. Coverage applies but the pontoon boat's owner
will also be involved in any subsequent lawsuits.
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- The parking of autos either on the named
insured’s owned or rented premises or next to that premises. The autos
being parked must not be owned by, rented, or loaned to the named insured
or any insured.
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Example: Ollie's Oriental
Grill arranges for valet parking during a dinner it hosts for its top
customers at its location. One of the valets inadvertently puts a car he is
parking in reverse and pins a woman walking behind it against another
vehicle. Coverage applies to the woman's injuries.
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- Liability that is assumed through any insured
contract that applies to owning, maintaining, or using aircraft or
watercraft
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Example: Ollie charters an
emergency flight to meet an important client and the charter company requires
him to sign a hold-harmless agreement.
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- Bodily injury or property damage caused by
machinery or equipment that is attached to mobile equipment that is
defined in this policy as auto only because it is subject to motor vehicle
financial responsibility laws.
- Bodily injury or property damage caused by mobile
equipment that is mounted on automotive or truck chassis and are used to
raise and lower workers or equipment. The injury or damage must be due to
the operation of the equipment, not the movement of the vehicle.
- Bodily injury or property damage caused by
mobile equipment air compressors, pumps, and generators that are
permanently mounted on self-propelled vehicles is also excepted. The
injury or damage must be due to the operation of the equipment, not the
movement of the vehicle.
The
04 13 edition deleted the words “in the state” before “where it is licensed” in
the prior edition with respect to licensing and garaging locations.
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Example: An all
terrain vehicle (ATV) is required to be licensed. A pulley welded to
the back of it used to pull a log suddenly swings the log and strikes a
person passing by. Coverage applies in this case because the pulley's
operation caused the accident, not the ATV.
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Example:
The well-drilling equipment
mounted on a truck chassis accidentally strikes and damages the side of a
building while maneuvering into position over a well. Coverage applies to the
building damage because the equipment operation caused the damage.
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Related
Articles:
CA 00 01–Business Auto Coverage Form Analysis
Aircraft
Insurance Coverage Analysis
ISO Commercial General Liability Coverage Forms Available
Endorsements and Their Uses – See the paragraph on CG 24 12 Boats
that is available to delete this exclusion and extend coverage for certain
boats.
Related
Court Cases:
Injury from Truck Damage to Sidewalk Held Not Within
Automobile Exclusion
Does Auto Exclusion Apply To Negligent Driver?
CGL's Automobile Exclusion Held To Apply,
Regardless Of Contention That An Unlicensed And Unregistered Truck Was
"Mobile Equipment"
Business
Liability Policy Cannot Be Construed As Automobile Policy
