Issue link: http://palletcentral.uberflip.com/i/893182
32 PalletCentral • September-October 2017 palletcentral.com 32 PalletCentral • September-October 2017 palletcentral.com General Liability Let's take a look at the general liability. If a liability claim is not covered under your auto policy for a dropped trailer, it will be covered under your general liability. Let's look into the general liability form to determine whether or not coverage would apply. Under the Insuring Agreement, it states "we will pay those sums that the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which this insurance applies." This would lead someone to believe that if a trailer caused bodily injury or property damage, it would be covered under the general liability policy; however, if you look through the policy and you look at what the exclusions are, there is exclusion for aircraft, auto or watercraft. The policy reads that coverage is excluded for bodily injury or property damage arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by, or rented or loaned to any insured. Use includes operation and loading and unloading. The exclusion of the auto, and then looking at the definition of the auto makes it clear that the general liability policy would not cover any liability claim resulting from a dropped trailer at a customer's location. Conclusion and Coverage Recommendation It is evident if you look at the auto and the general liability policies that the coverage would not apply to a liability claim resulting from a trailer that the insurance company does not know about or did not properly rate for on your insurance policy. The correct way to cover the exposure for trailers is as follows: 1. Always make sure your liability coverage is under "Symbol 01". This provides coverage for any auto. 2. When negotiating your renewal, make sure to send your broker and the carrier all of your trailers regardless of their values. Have the insurance company manuscript the policy so that coverage applies to all trailers or have them composite rate the auto so that all trailers are included for liability coverage. Insurance companies rely on the fine print of these policies so it is in your best interest to discuss these recommendations with your insurance broker. PC INSURANCE Dennis is Vice President/Account Director for the Property and Casualty Division at Marsh & McLennan Agency. Dennis focuses on insurance services for the wood packaging industry. He can be reached at 734- 525-2420 or visit www.mma-mi.com.