Business Auto & Non-Owned Trailer

    Posted by MAIA on Aug 7, 2019 12:01:00 AM

    QUESTION

    This question was answered based upon current rules, regulations & statutes in effect on July 22, 2019

    Commercial auto client borrows a trailer, whether 3k or 9k etc.. does a trailer fall under non owned?    A customer was asking if he uses his truck to borrow a trailer to pull some jet skis will the liability follow if that trailer lets loose and caused bi/pd?   I guess I never have had that question.      I know personal is standard answer, liability follows vehicle pulling it but that’s map not bap.

    ANSWER

    Irene Morrill: 

    The definition of auto in the BAP (2006, 2010, 2013)

    1. "Auto" means:
    2. A land motor vehicle, "trailer" or semitrailer designed for travel on public roads; or
    3. 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.

    However, "auto" does not include "mobile equipment".

    So a trailer is considered an “auto” …then …what symbol (s) activate liability?

    If you don’t have symbol 1

    1

    Any "Auto"

     

    Which would included non-owned and hired/borrowed.

    Then you needs multiple symbols …

    One for owned …

    2 would be best but not ‘probable’

    2

    Owned "Autos" Only

    Only those "autos" you own (and for Covered Autos Liability Coverage any "trailers" you don't own while attached to power units you own). This includes those "autos" you acquire ownership of after the policy begins.

    Most probably you have symbol 7

    7

    Specifically
    Described
    "Autos"

    Only those "autos" described in Item Three of the Declarations for which a
    premium charge is shown (and for Covered Autos Liability Coverage any "trailers" you don't own while attached to any power unit described in Item Three).

    So both 2 and 7 for owned autos can included ATTACHED trailers …

    Then you’d also need:

    8

    Hired "Autos" Only

    Only those "autos" you lease, hire, rent or borrow. This does not include any "auto" you lease, hire, rent or borrow from any of your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households.

    This would cover the trailer that insured borrowed but wasn’t attached.

    And …. Not that it matters in this discussion …I’d want symbol 9 for those situations when someone uses their “auto” on my insured’s behalf

    9

    Non-owned
    "Autos" Only

    Only those "autos" you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes "autos" owned by your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households but only while used in your business or your
    personal affairs.

    Symbol 1 includes owned …and symbol 8 and 9

     This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: Commercial, 2019

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