| Q&A of the Week |
Collision Coverage under a BAP
A Georgia subscriber recently asked the following question:
The insured has a standard commercial auto policy with the trucker's endorsement, CA 23 20. The insured has symbol 7 for collision and liability. There is no garagekeepers endorsement showing on the policy. There is no coverage for repair plates. There is no drive other car endorsement.
The insured was backing a vehicle off his trailer and struck another vehicle. The vehicle that our insured was backing is a 2015 Acura being delivered to the Acura dealership. There is a property damage claim from the vehicle that our insured struck for $1,570.42. There is no claim for the vehicle he was driving at this point, but there may be one in the future.
Liability for the Acura that our insured was driving appears to be excluded under the care, custody, or control exclusion. However, we are wondering if the handling of property exclusion suggests there might be coverage. The question is, are you "handling" a vehicle when you are driving it under the same definition of "handling" that applies to moving a couch or some other typical loading/unloading claim?
Please advise on coverage for both the vehicle our insured was driving and the vehicle that was struck by our insured.
ANSWER: The care, custody, or control exclusion applies so we do not see that the handling of property exclusion is relevant. As for the vehicle that was struck, the insured has coverage for property damage caused by an accident and resulting from the use of a covered auto. Read More |
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| What's New This Week in FC&S |
Fiduciary Liability—Estates and Trusts
A person trusted with responsibility for property or business following a death is generally charged with the duty for operation and maintenance of the property in his or her care, custody, or control. This is a discussion of the insurance available. Read More |
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| Litigation Watch |
Damage to Property Exclusions
This case concerns a dispute over insurance coverage for construction defects. The case is Western Heritage Ins. Co. v. Cannon, No. 13-CV-0204-TOR2014, WL 3697806 (July 24, 2014, E.D. Wash.).
The Cannons own a home built by Cook Custom Homes. Cook used a subcontractor, Hattenberg Excavating, to excavate the lot and add several hundred yards of fill soil to extend the building pad. The Cannons began to move into the residence while construction was still in progress, and they noticed cracks throughout the foundation, basement slab, ceilings, and driveway. An inspection attributed the cracks to defects in the settlement and soil subsidence.
The Cannons sued Cook. Cook agreed to a confession of judgment and assigned its rights against its insurer, Western Heritage, to the Cannons. Western Heritage filed for a declaratory judgment that it owed no duty to pay any amount to the Cannons. The insurer contended that six exclusions apply to preclude the Cannons from recovering under the policies issued to Cook.
Western Heritage argued that the subsidence exclusion bars its obligations. The Cannons countered that the exclusion does not apply because it contains the undefined term "operations" and this requires construal in favor of coverage. The Cannons contended that they reasonably understood "operations" to mean ongoing operations, and the exclusion would apply if Cook dug a hole near the house during construction and the digging caused a wall of the house to collapse during construction. The Cannons argued that because the damages occurred after the operation of bringing in the defective fill had been completed, the exclusion is not applicable. The district court did not find this argument persuasive. Read More
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| FC&S Ask the Experts |
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?
Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).
Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.
Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here. |
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