Josh and John were working on Josh's out-of-commission Chevy Sierra. John poured gasoline into its carburetor while Josh attempted to start it. The fumes ignited and John was badly burned. The vehicle had been out of service for months and it was not insured.

John's parents sued Josh. Since Josh resided in his parent's home, they turned to Allstate (their Mobilehome policy carrier) for defense and coverage. Allstate denied coverage and refused to defend because of the motor vehicle exclusion.

Allstate's denial was challenged because the motor vehicle exclusion did not exclude all motor vehicles. The loss would be covered if the vehicle was in dead storage at the time of the accident. Accordingly, the case centered on the definition of dead storage.

Click here for more details.

This loss should have been covered under personal auto coverage but coverage had been deleted because the vehicle was not being used. Deleting insurance coverage from any vehicle can result in an uncovered loss. Many clients may not even mention a vehicle that is out of service until a loss occurs.

Click here to review the Personal Lines Risk Evaluation Questionnaire Auto section that can be used to identify vehicles a client may have forgotten.

Does your client understand where personal auto policy coverage ends and homeowners policy coverage begins? Many clients purchase coverage only because it is required and are not completely comfortable with the distinctions between policies. A simple reminder may be helpful.

Click here for an emarketing article you can place on your website or add to your newsletter that could help.

Do you think your client may have a gap in coverage? Now is the time to speak. It is better to have the conversation now than to explain in a courtroom later why you chose to remain silent.

Click here for a letter you can send (or place into an email) to alert your client of your concern.

The narratives for the Producer's Commercial Lines Risk Evaluation System Casual and Artisan Contractor category have been updated. There are 43 classifications in this category, including:

Have you found what you need in the Producer OnLine? Is there a classification
to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

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