Vehicle Coverage under CGL Form

An Illinois subscriber recently asked the following question:

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?

ANSWER: 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. Read More

Drones

Drones are the latest new technology to catch the headlines. They are unmanned aircraft, often compared to model aircraft, but have been used in search and rescue, firefighting, surveillance, traffic monitoring, and other functions. Read More