Insurance Law> General Liability Insurance> Motor Vehicle Exclusions
The Mobile Equipment Exclusion from CGL Policy Coverage
A comprehensive general liability or CGL policy provides an insured business with protection against liability for damages from personal injury or property damage caused by the business. However, a standard form CGL policy contains various exclusions, including the mobile equipment exclusion, that define situations in which the CGL policy will not provide coverage. The insured business must obtain other insurance to cover such excluded situations.
h. ''Bodily injury'' or ''property damage'' arising out of:
(1) The transportation of ''mobile equipment'' by an ''auto'' owned or operated by or rented or loaned to any insured; or
(2) The use of ''mobile equipment'' in, or while in practice or preparation for, a prearranged racing, speed or demolition contest or in any stunting activity.
Generally, "mobile equipment" is defined elsewhere in the policy as land vehicles, including attached machinery and equipment, that is designed for off-road use. The lengthy description of mobile equipment includes items such as bulldozers, vehicles with treads, farm machinery, cranes, and road construction machines. The definition of mobile equipment has been expanded over time. Thus, an insured should examine the exact language of the issued policy.
In reviewing the mobile equipment exclusion, it should be kept in mind that CGL coverage for bodily injury or property damage arising out of transportation of mobile equipment is excluded. However, coverage for injury or damage arising out of the use, rather than transportation, of the mobile equipment is not excluded. For example, injury or damage from an accident when moving mobile equipment from one job site to another would not be covered due to the exclusion, but injury or damage caused by use of the mobile equipment at a job site still would be covered under the CGL policy. Copyright 2006 LexisNexis, a division of Reed Elsevier Inc.
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