SECTION I–COVERAGES
COVERAGE
A–BODILY INJURY AND PROPERTY DAMAGE LIABILITY
2. Exclusions
g. Aircraft,
Auto, or Watercraft (04 13 change)
Coverage does not apply to bodily injury or property damage that arises
out of owning, maintaining, using, operating, loading, unloading, or entrusting
to others any aircraft, auto, or watercraft that any insured owns, operates,
rents, or has loaned to it. This exclusion applies even if a claim alleges that
any insured was negligent or engaged in wrongdoing 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 has five exceptions. It does not apply to:
- Watercraft on shore at locations the
named insured owns or rents
- Watercraft 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. 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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- 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 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 assumed under 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 it to
sign a hold-harmless agreement.
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- Bodily injury or property damage that arises out of operating
machinery or equipment attached to or that is 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 where it is
licensed or principally garaged. Bodily injury or property damage caused
by operating cherry pickers or similar devices mounted on automotive or
truck chassis and used to raise or lower workers or equipment and air
compressors, pumps, and generators permanently mounted on self-propelled
vehicles is also excepted.
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.
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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
