Issue link: http://palletcentral.uberflip.com/i/893182
palletcentral.com PalletCentral • September-October 2017 31 general liability cover them? Because general liability should cover me for any bodily injury or property damage that I cause through my operations, right? Let's take a deep dive into both the auto and the general liability policy to see what coverage would apply and then we will conclude with some suggestions that all pallet manufacturing companies should put into their general business practice. 1. Under Section II of the ISO auto policy – liability coverage, it states "we will pay all sums insured legally must pay as damages because of bodily injury or property damage to which this insurance applies caused by an accident and resulting from the ownership, maintenance or use of a covered auto." The definition of an "auto" is a "land motor vehicle, trailer or semi-trailer designed for travel on public roads including any attached machinery or equipment or any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged." So now that we know the definition of an auto, we'll include our trailers. If the insurance company is aware of a trailer when coverage is bound, then the liability would cover bodily injury or property damage to a trailer that is at a customer's location. If we look further, the coverage for certain trailers is automatically included without scheduling that specific trailer. Under Section I under Covered Autos, there is automatic coverage for trailers with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. So what this means is, for any trailer that has a load capacity less than 2,000 pounds, you do not need to inform the insurance company of this trailer because it is automatically covered for liability. To take this one step further, for trailers that have a load capacity of 2,000 pounds or more, the coverage for liability would apply while it is attached to a power unit. The conclusion on the auto is that if the insurance company establishes their rates off of 12 trailers that the leasing company is requiring that you insure, but you actually have 250 trailers, if one of the trailers that is not included in the rating is dropped at a customer's location, then the insurance company will deny the liability claim. palletcentral.com PalletCentral • September-October 2017 31