(May 2011)
SECTION I–COVERAGES
COVERAGE A–BODILY INJURY AND PROPERTY DAMAGE LIABILITY
2. Exclusions
g. Aircraft, Auto Or Watercraft
Insurance does not apply to bodily injury or property damage that arises out of ownership, maintenance, use, including operation, loading or unloading, or entrustment to others of any aircraft, auto, or watercraft owned, operated by, or rented or loaned to any insured. This exclusion applies even if a claim alleges negligence or other wrongdoing by any insured in supervising, hiring, employing, training or monitoring others.
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Example: A watercraft the insured owns and rents to its employees for pleasure use is not properly maintained and an employee is injured when the watercraft sinks. Coverage does not apply to the injury.
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This exclusion does not apply to:
• Watercraft ashore at the named insured's owned or rented locations
• Watercraft that the named insured does not own that are less than 26 feel long and that are not used to transport people or property for a fee
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Example: Ollie at Ollie's Oriental Grill rents a pontoon boat for an afternoon sales presentation and cooks appetizers on a small charcoal grill. The grill causes a fire. When the guests move to the other side of the boat to get away from the fire, 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 would also be involved in any subsequent lawsuits.
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• Autos parked on or on ways next to the named insured's owned or rented locations. Such autos may 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 held 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 assumed under any insured contract that applies to ownership, maintenance or use of aircraft or watercraft
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Example: Ollie charters an emergency flight to meet an important client and the charter company requires it to sign a hold-harmless agreement.
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• Bodily injury or property damage that arises out of operation of machinery or equipment attached to or part of a land vehicle that qualifies as mobile equipment except that it is subject to a compulsory, financial responsibility, or other motor vehicle insurance law in the state where it is licensed or principally garaged. In addition, bodily injury or property damage caused by the operation of cherry pickers or similar devices mounted on automotive or truck chassis and used to raise or lower workers or of equipment and air compressors, pumps and generators permanently mounted on self propelled vehicles.
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Example: An all terrain vehicle (ATV) is required to be licensed. A pulley welded to the back of it and 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 the side of a building while maneuvering into position over a well, causing damage to the building. Coverage applies to the building 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 states that CG 24 12–Boats deletes the watercraft exclusion and extends coverage to certain boats.
Related Court Case: Injury From Truck Damage To Sidewalk Held Not Within Automobile Exclusion
