In addition to those types of vehicles, the AAMVA working group has deliberated over trucks converted to motor-homes, "kit cars" assembled in part by their owners, and other types of unconventional vehicles. To date, there is little uniformity among state and provincial laws regarding the classification and regulation of such vehicles. Their owners and insurers must consult local laws and regulations regarding registration, licensing of operators, use on public roads, and insurance requirements.
In July 2009, Tata Motors, an Indian-based manufacturer introduced a vehicle to the Indian market that retails for about $2,000. There has been some discussion that the vehicle, the Nano, will eventually be sold in the U.S. The company already has 1 million reservations for its mini-car. The vehicle, with a rear engine and small tire frame, reportedly gets over 61 mph. While it is intended for public road use, some of the vehicles may eventually be used as inexpensive off-road utility vehicles.
This report identifies some emerging vehicle exposures and relevant AAIS policy provisions. While there is some reference in our charts and tables to first-party property coverage, our principal concern is to provide a useful guide to identifying and covering or excluding liability exposures.
This report will be updated periodically.
There are several categories of non-auto vehicles of particular concern at this time. For purposes of illustration, this report cites distinctions among vehicles as indicated in the Kansas report.
Most P/C professionals are familiar with provisions added to homeowners policies addressing the use of golf carts for transportation off of a golf course.
Few people, perhaps, are aware of how extensive such use has become. To cite just two examples, one retirement community in central Florida has more than 100 miles of golf cart trails, and a high school in Georgia has a parking lot for student golf carts. Today, at least 26 states allow local governments to permit use of golf carts on public roads.
As the use of golf carts grows, so does the number of injuries arising from their use. The American Journal of Preventive Medicine reports that the number of golf cart-related injuries in the US increased from about 5,770 in 1990 to 13,411 in 2006. According to the journal, almost 30% of the injuries occur off golf courses, and more than 30% involve children under age 16.
Similarly, The Journal of Trauma recently reported that there are about 1,000 golf cart-related injuries requiring emergency room treatment each month, about 20% of them arising from use away from golf courses.
According to the Kansas report, most golf carts are originally designed to travel no faster than 20 mph on level ground. Unless modified to attain higher speeds, most golf carts do not qualify as "low speed vehicles" as defined by the National Highway Transportation Safety Administration (NHTSA).
In 1998, the National Highway Transportation Safety Administration (NHTSA) defined 4-wheeled electric vehicles whose top speed on level ground was greater than 20 mph but less than 25 mph as "low-speed vehicles."
NHTSA requires such vehicles, including golf carts that travel 20-25 mph, to be equipped with headlamps, stop lamps, turn signal lamps, tail lamps, reflex reflectors, parking brakes, rearview mirrors, windshields, seat belts, and vehicle identification numbers.
In Kansas, low-speed vehicles that meet federal safety standards can be operated on public roads, but they must be registered as motor vehicles and have proof of insurance to do so.
These small trucks (no more than 4' wide by 12' feet long) are used for hauling gear and cargo within and among job sites. In many states, these vehicles are exempt from vehicle registration and insurance requirements, but subject to requirements for licensed drivers and seatbelt use if they are used on public roads.
The Kansas report makes a distinction between micro-utility trucks and "work site utility vehicles." Although micro-utility trucks and work-site utility vehicles have much in common, the former have metal cabs, while the latter have open seats. Also, micro-utility trucks have higher pressure tires, while work-site utility vehicles have smaller, low pressure tires.
A type of "mini-truck," Kei trucks (short for keijidosha and pronounced "Kay" trucks) are lightweight trucks manufactured in Japan for use on public roads, but typically purchased in the U.S. for off-road use. According to a November 2008 report from the Insurance Institute for Highway Safety, "federal safety standards don't apply to these mini-trucks because they are sold as off-road vehicles, even though they are permitted on public roads in some states."
Kei trucks are about 10 feet long, five feet high, four feet wide, and normally have a bed behind the cab that is about six feet long with a carrying capacity of about 1,200-1,500 pounds. Motors typically allow a top speed of about 55 mph, with a few models capable of reaching 75 mph. Due to state laws or local ordinances, some Kei trucks are sold with governors limiting their speeds.
Because Japan's vehicle emission regulations discourage continued use of older vehicles, many used Kei trucks are exported. In the U.S., they are often purchased by farmers and hunters, though Kei trucks are also used in construction and other commercial applications.
Kei trucks can be quite inexpensive (retailing for $4,000-$5,000), especially considering that they are 4-wheel drive vehicles with good off-road traction and excellent gas mileage (up to 40 mpg).
Kei trucks pose several concerns for insurers, however:
- They are typically imported and sold "as is," with no chance to learn their vehicle
history;
- Their steering wheels are on the right side, which disorients some drivers;
- Their speedometers display kilometers rather than miles;
- Their odometers only have five digits, so the true mileage is uncertain;
- Their manuals are printed in Japanese;
- They typically do not come equipped with air bags; and
- The cab-over design does not provide much cushion or protection for the driver or passenger in the event of a front-end collision.
The increasing popularity of Kei trucks has led some states to allow limited use of them on public roads. While no states allow Kei trucks on interstate highways, other regulations are far from being standardized.
- Ten states allow the use of Kei trucks on public roads but limit their use to roads
with certain posted speed limits,
with maximums ranging from 35-65 mph;
- Four states have set speed limits on Kei trucks themselves, ranging from 25-55
mph;
- Illinois and Missouri allow Kei trucks only by local ordinance; and
- Illinois, Kansas, and Tennessee require Kei trucks to comply with the NHTSA's
safety standards for low-speed vehicles.
For purposes of discussion here, we are referring to vehicles designed principally for use off public roads. For that reason, many states require that ATVs be registered with a state recreation agency, or department of natural resources and conservation, rather than with a motor vehicle department.
ATVs are commonly defined as 3- or 4-wheeled vehicles that have a seat designed to be straddled by the operator and have handle bars used for steering.
ATVs were originally manufactured by small manufacturers in the United States, but most ATVs sold in the U.S. today are manufactured by Japanese companies. ATVs are also manufactured in China, though those models are not yet imported in significant numbers. Early Japanese ATVs were 3-wheel, but those models were discontinued due to roll-over problems, while cornering, and a propensity to flip backward because of their uneven weight distribution. ATVs now are 4-wheel and are sold for both recreational off-road use and as utility vehicles. They are popular with hunters, farmers, ranchers and companies at some construction sites.
A Consumer Product Safety Commission (CPSC) study indicates that in 2004, 767 people died in ATV-related accidents in the U.S. There were 1.1 deaths per 10,000 four-wheel ATVs in use. About 150 of the deaths involved children under the age of 16.
In 2005, there were about 136,700 ATV-related injuries requiring some hospital treatment, with about 171.5 injuries per 10,000 four-wheel ATVs in use. The accident-rate among children is believed to be disproportionately high.
An Internet search shows verdicts for lawsuits, stemming from the alleged negligent use of ATV's, totaling up to $4.5 million. The Internet further reveals multiple plaintiffs attorneys soliciting clients for class action lawsuits against ATV manufacturers.
Many municipalities have enacted ordinances restricting the use of ATVs. Some have prohibited their use by small children or require safety equipment such as helmets.
The Kansas report cites a distinction between a motorized bicycle, defined as having a fuel-powered motor capable of attaining a top speed of 30 mph, and an "electric-assisted bicycle," defined as having an electric motor capable of propelling the bicycle no more than 20 mph.
In Kansas, a motorized bicycle is required to be registered and the operator must have a valid driver's license, but there is no insurance requirement. There are no requirements regarding registration, operator licensing, or insurance for electric-assisted bicycles.
The Kansas report does not mention mopeds, which are similar to motorized bicycles except that the pedaling helps the motor rather than the motor helping the pedaling. In Michigan, mopeds must be registered but not titled, and operators must be at least 15 years older with a valid vehicle license.
Almost anyone living in a neighborhood with children has seen a child speeding down the sidewalk on a scooter or motorbike with a friend hanging on. Do their parents have insurance in case of a serious accident?
There is a growing array of motorized toy vehicles with wide-ranging speeds; many are modified by their owners to attain even greater speeds. Such toys include:
- Gas- or electric-powered motorized scooters with top speeds ranging from 15 to 45 mph;
- Gas- or electric-powered skateboards that typically have top speeds of 20 mph, but can exceed 30 mph; and
- Gas- or electric-powered "minibikes," which look like miniature motorcycles.
Rarely, if ever, do these vehicles require registration or an operator's license.
Older minibikes are generally small with relatively low top speeds, but newer models can run much faster. Popular new "pocketbikes," or "minimotos," have maximum speeds of 18-43 mph, while slightly larger "midi-motos" can reach 30-60 mph.
Minibikes and other motorized toys generally cannot be used on public streets because they lack the required height for motorcycles and are sold without required safety equipment, such as turn-signal indicators. However, there are a few models called "super" pocket bikes that meet requirements for licensing on public roads.
Some communities, however, allow certain motorized toys on municipal streets provided the operators follow traffic laws. Also, some municipalities allow motorized toys to be used on public sidewalks, though there may be restrictions relating to the operator's age, maximum speeds, hours of operation, mandatory safety training, mandatory safety equipment such as helmets, and prohibited locations of operation. Restrictions vary by community.
Segways were introduced in 2001. The two-wheel self-balancing electric vehicles retail for $5,350 to $6,400. As of 2007, there were about 30,000 Segways in use in the U.S. They are used by some police departments, the military, some warehouses, corporate campuses, and tour groups.
A group known as Disability Rights Advocates for Technology advocates the changing of laws to permit the unrestricted use of Segways on sidewalks and buildings for disabled individuals - particularly disabled veterans. Due to the group's efforts, in 2005 the United States Department of Transportation's Disability Law Coordinating Council instructed public transportation agencies to allow people with Segways aboard transportation vehicles. Note that Segways are not marketed, or approved by the Food and Drug Administration, as medical devices.
Snowmobiles are normally associated with off-road use, though there is a McDonald's in Sweden with a drive through window and parking spaces designed to accommodate snowmobiles. Most states in the United States prohibit snowmobile use on public roads, other than to cross the roads. Some states allow the use of snowmobiles on certain marked roads in state parks. Such snowmobiles are generally required to be registered.
According to the U.S. Consumer Product Safety Commission, about 110 people die each year while riding snowmobiles. There are about 13,400 emergency room-treated injuries annually, about 750 of which involve children under the age of 15.
When it comes to the insurance implications of unconventional vehicles, vehicle owners themselves probably bear the greatest risk.
For insurers, liability coverage under auto policies typically extends only to scheduled autos, plus newly-acquired ones, typically for a 30-day period. For personal and general liability insurers, whatever coverage there is for vehicles is usually restricted to certain types of vehicles in certain situations.
The greatest risk, therefore, is to insureds who often do not realize that a vehicle they purchased may require special insurance in order to have liability coverage in place.
Nonetheless, in the absence of a clear and consistent line of demarcation between "motor vehicles" and other personal property, personal and general liability insurers may face unintended exposures. What a carrier might consider a motor vehicle a court may regard as an item of mobile equipment, a toy, or some other form of personal property that might qualify for liability coverage.
It's also unclear how the casual use of terms may affect coverage. As stated above, standardized homeowners policies have specified coverage in place for golf carts, but the term is not defined. Some of the new micro-utility vehicles are often called "golf carts," since they resemble golf carts. Will such resemblances, and casual comments based on such resemblances, create coverage where it may not have been intended?
To help clarify the type of exposure presented by a vehicle, underwriters can ask the following questions:
Is the vehicle required to be registered with a department of motor vehicles?
If so, it will generally qualify as a motor vehicle for insurance purposes, including requirements that it be insured for liability.
Is the vehicle required to carry a title?
If not, that is an indication that authorities do not consider the vehicle to be in the same class as cars, trucks, and motorcycles.
Is the vehicle required to be registered with some other state department?
If so, this introduces an element of ambiguity. If a vehicle must be registered with a state department of conservation or natural resources, it is an indication that authorities believe the vehicle is designed primarily for use off public roads.
Does the vehicle have a vehicle identification number?
If so, this is one factor that state authorities often cite in determining whether a vehicle is to be treated as an auto for registration and enforcement (e.g., seatbelt laws).
Is the vehicle designed primarily for use on public roads?
Some would say this is still the primary question to ask when seeking to distinguish an "auto" from other vehicles, but it is getting harder to answer.
Many "off-road" vehicles can be and are used on public roads, and the distinction is particularly hard to make regarding Japanese "Kei" trucks, which are designed for on-road use in Japan, but marketed primarily for off-road use in the U.S., and often restricted from public roads there.
Does the vehicle have an open or closed cab?
We are not aware that these factors have been officially incorporated into any definition of "auto" or another type of vehicle, but a review of state criteria suggests that vehicles with open cabs are less likely to be subject to registration and insurance requirements.
Does the vehicle have high-pressure or low-pressure tires?
Again, the pressure of tires does not appear to be an explicit criterion of autos, but vehicles with low-pressure tires are less likely to be subject to registration and insurance requirements.
Simply put, the more like a golf cart a vehicle is, the less likely it will be treated as an auto under the law.
AAIS form |
Definition of "auto" |
Property Coverage |
Liability coverage |
Homeowners 2008 |
"Auto" not defined. |
Excluded |
Incidental coverage for motorized vehicles applies only to vehicles not registered or required to be registered for use at the location of the occurrence. |
Farmowners Ed. 1.0 |
"Auto" not defined.
Limitations on Certain Property provide up to $2,500 only for certain motorized vehicles not designed or licensed for use on public roads. |
" |
with GL-610 Ed 2.0 - Supplemental coverage for motorized vehicles covers BI/PD arising out of the parking of a motorized vehicle on premises owned by, rented to, or controlled by the named insured or on the ways immediately adjoining if the vehicle is not owned by, rented to, or loaned to an insured. 
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with GL-610 Ed 2.0 endorsed to include GL-9 Ed. 1.0 Personal Liability Coverage - no additional grant of coverage for vehicles subject to motor vehicle registration.
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with GL-2 Ed 2.0 - No coverage for vehicles subject to motor vehicle registration. |
Farm Commercial Liability Coverage
(AL 0001 09 08) |
A land motor vehicle designed for travel on public roads.
Auto also means any land vehicle subject to a compulsory insurance or financial responsibility law or other motor vehicle insurance law in the state where it is licensed or principally garaged. |
n.a. |
Coverage for BI/PD arising from mobile equipment, which includes land vehicles that are used only on premises owned by or rented to the named insured (or on ways immediately adjoining such premises).
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Coverage for parking an auto on premises owned by, rented to, or controlled by the named insured or on the ways immediately adjoining such premises if the auto is not owned by, etc. the named insured. |
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Agribusiness Commercial General Liability Coverage
(AL 0002 09 08) |
" |
" |
" |
Agricultural General Liability with Personal Liability Coverage endorsement |
" |
" |
Endorsement adds coverage for BI/PD arising from a motorized vehicle that is in dead storage on an insured premises or is used only to service an insured premises, but only if the occurrence takes place on such premises. |
Artisans Ed. 2.0 |
A land motor vehicle designed for travel on public roads. |
No coverage for vehicles or self-propelled machines required to be licensed for use on public roads. |
Coverage for parking an auto on premises owned by, rented to, or controlled by the named insured or on the ways immediately adjoining if the auto is not owned by, rented to, or loaned to the insured.
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Supplemental coverage for mobile equipment applies to land motor vehicles that are used only on premises owned by or rented to the named insured or the insured.
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Businessowners 2004 |
A land motor vehicle designed for use on public roads. |
" |
Coverage for parking an auto on premises owned by, rented to, or controlled by the named insured or on the ways immediately adjoining such premises if the auto is not owned by, rented to, or loaned to the named insured or the insured.
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Close (X)
Mobile equipment includes land motor vehicles that are used only on premises owned by or rented to the named insured.
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Commercial Liability
Ed. 1.0 |
A land motor vehicle designed for travel on public roads. |
n.a. |
Coverage for parking an auto on premises owned by, rented to, or controlled by the named insured or on the ways immediately adjoining such premises if the auto is not owned by, rented to, or loaned to the named insured or the insured.
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Close (X)
Supplemental coverage for mobile equipment applies to land motor vehicles that are used only on premises owned by or rented to the named insured.
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AAIS personal and farm policy references
for vehicles not subject to registration requirements:
AAIS form |
Property Coverage |
Liability coverage |
Who is an insured
for liability coverage? |
Homeowners 2008 |
Excluded, with exceptions for:
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Close (X)
- Vehicles designed to assist the handicapped; and
- Vehicles owned by an insured, designed for use off public roads, and used only to service an insured premises or premises or another.
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Incidental liability coverage covers BI/PD arising from a motorized vehicle:
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- In dead storage on an insured premises;
- Used only to service an insured premises if the occurrence takes place on certain insured premises;
- Used only to service an insured premises or another’s premises if the motorized vehicle is designed only for off-road use;
- Designed to assist the handicapped;
- Designed for off-road recreational use if the motorized vehicle is not owned by the insured, or it is owned but the occurrence takes place on certain insured premises; or
- Operated only from electrical current supplied by a battery and does not exceed 15 mph on level ground and is not a motorized bicycle, moped, or golf cart.
Several restrictions apply (see below).*
Incidental liability coverage covers BI/PD arising from a motorized golf cart that:
- Is owned by an insured;
- Is designed to carry no more than four people;
- Isn't built or modified to exceed 25 mph on level ground; and
- At the time of occurrence is within the legal boundaries of:
- A golfing establishment and is parked or stored there or is being used by an insured to play golf or for other recreational activity allowed by the establishment; travel to or from an area where motorized vehicles or golf carts are parked or stored; or cross public roads at designated points to access other parts of the establishment; or
- A private residential community, including its public roads upon which a golf cart can legally travel, that is subject to the authority of a property owners' association and in which an insured premises is located.
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Named insured plus those included in definition of insured (spouse, resident relatives, etc.)
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Persons while engaged in the employ of certain insureds, but only with respect to a motorized vehicle to which the insurance applies.
Persons using a motorized vehicle to which the insurance applies on an insured premises with the named insured's consent, but only with respect to such use.
Persons or organizations accountable by law for a motorized golf cart owned by an insured, and to which the insurance applies, but only with respect to the golf cart. This does not include persons or organizations using or having charge or control of the golf cart without the owner's consent.
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Farmowners Ed. 1.0 |
$2,500 limit for motorized vehicles used to service the insured premises. All other vehicles excluded. |
with GL-610 Ed 2.0 - Definition of motorized vehicle does not include vehicles designed and used to assist the handicapped and are not required to be licensed for road use.
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Close (X)
Supplemental coverage for motorized vehicles covers BI/PD arising from a motorized vehicle:
- Designed only for use off public roads & used to service insured premises (coverage does not apply to BI/PD resulting from motorized vehicle used for recreational purposes away from insured premises); or
- On insured premises.
with GL-610 Ed 2.0 endorsed to include GL-9 Ed. 1.0 Personal Liability Coverage - Adds incidental liability coverage for motorized vehicles that covers BI/PD, which occurs on premises and is result of ownership, use, etc. of a motorized vehicle or a recreational motor vehicle including occurrences that result from:
- A golf cart while used for golfing; or
- A motorized vehicle designed only for use off public roads and which is used mainly to service the insured premises (coverage does not apply to BI/PD which results from a motorized vehicle owned by an insured, other than a golf cart while used for recreational purposes away from the insured premises.
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Named insured plus those included in definition of insured (spouse, resident relatives, etc.)
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with GL-2 Ed 2.0 - Definition of motorized vehicle does not include vehicles designed and used to assist the handicapped and are not required to be licensed for road use.
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Close (X)
Incidental liability coverage for motorized vehicles covers BI/PD which occurs on premises and is result of ownership, use, etc. of a motorized vehicle or a recreational motor vehicle including those that result from:
- A golf cart while used for golfing; or
- A motorized vehicle designed only for use off public roads and which is used mainly to service the insured premises (This coverage does not apply to BI/PD which results from a motorized vehicle owned by an insured, other than a golf cart while used for recreational purposes away from the insured premises.
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Farm Commercial Liability Coverage
(AL 0001 09 08) |
n.a. |
Covers BI/PD arising out of the use of mobile equipment, including attached machinery or equipment.
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Mobile equipment includes:
- Vehicles used only on premises (including adjoining ways) owned by or rented to the named insured;
- Vehicles designed primarily for use off public roads;
- Vehicles that travel on crawler treads;
- Vehicles whether self-propelled or not, designed/used to afford mobility to certain types of equipment, which must be a part of or be permanently attached to the vehicle; or
- Vehicles that are not self-propelled, but are used primarily to afford mobility to certain types of permanently attached equipment.
Excludes liability for BI/PD arising out of transporting mobile equipment by an auto owned by, operated by, rented to, or loaned to any insured.
Coverage for an auto on premises used for farming purposes if the auto is not subject to a compulsory or financial responsibility law or other motor vehicle because it is used only on such premises or it is in dead storage on such premises. |
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Named insured plus those included in definition of insured (spouse, etc.)
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Any person driving mobile equipment with the named insured's permission (including another person or organization legally liable for the conduct of the driver). This does not apply to a fellow employee injured during the course of employment.
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Agribusiness Commercial General Liability Coverage
(AL 0002 09 08) |
" |
Same as AL 0001 09 08 except no coverage for an auto on premises used for farming purposes of the auto is not subject to a compulsory or financial responsibility law or other motor vehicle because it is used only on such premises or it is in dead storage on such premises. |
" |
Agricultural General Liability with Personal Liability Coverage endorsement |
" |
Adds incidental liability coverage for BI/PD arising from a motorized vehicle:
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Close (X)
- In dead storage on an insured premises;
- Used only to service an insured premises and the occurrence takes place on certain insured premises;
- Used only to service an insured premises or another’s premises if the motorized vehicle is designed only for off-road use;
- Designed to assist the handicapped;
- Designed for off-road recreational use if the motorized vehicle is not owned by the insured, or it is owned but the occurrence takes place on certain insured premises; or
- Operated only from electrical current supplied b a battery and does not exceed 15 mph on level ground and is not a motorized bicycle, moped, or golf cart.
Several restrictions apply (see below).*
Incidental liability coverage covers BI/PD arising from a motorized golf cart that:
- Is owned by an insured;
- Is designed to carry no more than four people;
- Isn't built or modified to exceed 25 mph on level ground; and
- At the time of occurrence is within the legal boundaries of:
- A golfing establishment and is parked or stored there or is being used by an insured to play golf or for other recreational activity allowed by the establishment; travel to or from an area where motorized vehicles or golf carts are parked or stored; or cross public roads at designated points to access other parts of the establishment; or
- A private residential community, including its public roads upon which a golf cart can legally travel, that is subject to the authority of a property owners' association and in which an insured premises is located.
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"
Endorsement adds:
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- Persons while engaged in the employ of an insured with respect to a motorized vehicle to which the insurance applies;
- Persons using motorized vehicle while on insured premises with named insured's consent, but only with respect to such use; and
- Persons or organizations accountable by law for a motorized golf cart owned by an insured, and to which the insurance applies, but only with respect to the golf cart. (This does not include persons or organizations using or having charge or control of the golf cart without the owner's consent.)
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*The Homeowners incidental liability coverage and the AgGL with the endorsement for Personal Liability Coverage do not apply to motorized vehicles, including golf carts, if they are:
- Registered for use on public roads or property;
- Required to be registered for use at the location where a loss occurs;
- Preparing for or participating in prearranged races, stunts, etc.;
- Being rented to others (the AgGL with the endorsement for Personal Liability Coverage specifies being rented to others by an insured);
- Being used to carry people or cargo for a fee; or
- Being used for any business purpose (other than golf carts as noted below).
AAIS commercial policy references
for vehicles not subject to registration requirements:
AAIS form |
Property Coverage |
Liability coverage |
Who is an insured
for liability coverage? |
Artisans Ed. 2.0 |
No coverage for vehicles or self-propelled machines required to be licensed for use on public roads. |
Supplemental coverage for mobile equipment covers BI/PD resulting from the use of mobile equipment (including attached equipment and machinery). Coverage applies to vehicles that meet certain criteria including:
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Close (X)
- Vehicles used only on premises (including adjoining ways) owned or rented to the named injured; and
- Vehicles designed primarily for use off public roads.
There is no coverage for liability arising out of transporting mobile equipment by an auto that is owned by, operated by, rented to, or loaned to any insured.
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- The named insured and its employee in the course of employment.
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Close (X)
- Any other person, including another person/organization legally liable for the conduct of such person, but only:
- For liability arising out of the operation of the equipment; and
- If there is no other insurance covering the liability available to them.
No person/organization is an insured for PD to property owned by, rented to, etc. the named insured, or an employer of any person who is an insured under this provision. |
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Businessowners 2004 |
" |
Mobile equipment means, in part, land vehicles, including attached machinery or equipment, used only on premises (including adjoining ways) owned by or rented to the named insured.
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Close (X)
Bodily injury or property damage arising out of transporting mobile equipment by an auto owned by, operated by, rented to, or loaned to any insured is excluded.
|
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Refer to definition of insured. |
Commercial Liability Ed. 1.0 |
n.a. |
Supplemental coverage covers BI/PD resulting from the use of mobile equipment, including attached equipment and machinery. Mobile equipment includes:
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Close (X)
- Vehicles used only on premises (including adjoining ways) owned by or rented to the named insured;
- Vehicles designed primarily for use off public roads;
- Vehicles that travel on crawler treads;
- Vehicles that are self-propelled & designed/used to afford mobility to certain types of equipment, which must be a part of or be permanently attached to the vehicle; or
- Vehicles that are not self-propelled, but are used primarily to afford mobility to certain types of permanently attached equipment.
Excludes liability arising out of:
- Loading or unloading certain mobile equipment, and
- Transporting mobile equipment by an auto owned by, operated by, rented to, or loaned to any insured.
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With respect to the operation of mobile equipment with the named insured's permission, the named insured's employee in the course of employment is an insured.
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This does not apply to a fellow employee injured during the course of employment. Any other person, including another person/organization legally liable for the conduct of such person, but only:
- For liability arising out of the operation of the equipment.
- If there is no other insurance covering the liability available to them.
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All AAIS policy forms that provide liability coverage impose an exclusion for bodily injury or property damage arising from certain racing and stunting activities, and practicing for such activities. Note that the homeowners forms and the AgGL with the Personal Liability Coverage endorsement exclude liability arising out of the use of motorized vehicles used in or in the practice or preparation for prearranged or organized racing and stunting activities.
As noted above, non-golfing use of golf carts is explicitly referenced in personal liability policies, and the AAIS Homeowners forms and the AgGL forms with the personal liability coverage endorsement are no exception. The coverages are a response to the fact that there are now many communities where golf carts are a primary mode of transportation.
Under these forms, incidental liability coverage for motorized vehicles covers BI/PD arising from a golf cart being used for a business purpose, such as a salesman taking clients out golfing, but only if the cart is being used on a golfing establishment.
Coverage applies to golf carts owned by an insured, designed to carry no more than four persons, and not built or modified to exceed 25 mph on level ground. The coverage applies to such golf carts:
- While parked, stored, or being used by an insured at a golfing establishment for purposes specified in the form; and
- While within a private residential community subject to the authority of a property owners' association in which an insured premises is located.
Coverage is also provided for certain use of non-owned golf carts since the incidental coverage applies to BI/PD arising out of a motorized vehicle that is designed for recreational use off of public roads and which is not owned by an insured.
The exclusion for BI/PD arising out of the use of a golf cart that is registered for use on public roads or property is unaffected even when the endorsement for Golf Cart Liability Coverage is attached to the policy.
Agricultural Liability
- Personal Liability Coverage (includes incidental liability coverage for motorized vehicles)
- Personal Liability Coverage - Owned All Terrain Vehicle (covers BI/PD arising out of the personal use of owned all-terrain vehicles)
- Personal Liability Coverage - Golf Carts (covers liability arising out of the use of certain golf carts at certain locations)
- Personal Liability Coverage - Low Power Vehicles (covers liability arising out of off- premise use of certain owned low-speed motorized vehicles that are powered by means other than electrical current supplied by a battery)
- Personal Liability Coverage - Owned Snowmobile (covers BI/PD arising out of personal use of owned snowmobiles)
- Autos Exempted From Registration (covers BI/PD arising out of autos, exempt from registration requirements because of their use for agricultural purposes, while being used within the scope of the exemption permit)
- Hired Auto Liability Coverage (covers BI/PD arising out of hired and non-owned autos)
- Additional Insured - Golfmobiles (amends definition of insured to include person using or legally responsible for the use of golfmobiles which the named insured or the named insured's concessionaires loan or rent to others)
Artisans
- Contractors' Equipment (coverage for equipment at a job site, at a storage location, and while in transit)
- Contractors' Equipment Schedule (schedule for contractors' equipment)
- Auto and Mobile Equipment Amendments (motor vehicles subject to motor vehicle insurance laws are considered autos and not mobile equipment)
Businessowners
- Non-Owned Auto Liability Coverage/Hired Auto Liability Coverage (extends Coverage L to apply to non-owned and/or hired autos) - not available for use in all states
- Expanded Non-Owned Auto Liability Coverage/Hired Auto (extends Coverage L for expanded coverage for non-owned and/or hired autos)
- Motor Vehicle Laws and Mobile Equipment (coverage required by any motor vehicle financial responsibility law for mobile equipment is provided by the policy at the limits required by the law)
- Auto and Mobile Equipment Amendments (motor vehicles subject to motor vehicle insurance laws are considered autos and not mobile equipment)
Commercial Liability
- Non-owned Auto Liability Coverage/Hired Auto Liability Coverage (covers non-owned and/or hired autos)
- Additional Insured - Golfmobiles (amends definition of insured to include person using or legally responsible for the use of golfmobiles which the named insured or the named insured's concessionaires loan or rent to others)
- Auto and Mobile Equipment Amendments (motor vehicles subject to motor vehicle insurance laws are considered autos and not mobile equipment)
Farmowners
- Consent to Move Mobile Home (Covers mobile home while it is away from the insured premises. Does not include coverage for loss caused by collision or upset)
- Farm Machinery (covers farm machinery on an open-perils basis)
- Snowmobile (covers liability arising out of specifically described snowmobiles)
Homeowners
- Incidental Coverage For Motorized Vehicles - Low Power Vehicles (Amends the definition of insured with respect to liability coverages to include a person or organization legally responsible for an owned covered vehicle. Coverage applies to certain motorized vehicles that do not exceed 15 mph.)
- Scheduled Motorized Golf Cart Coverage (open perils property coverage for scheduled golf carts)
- Golf Cart Liability Coverage (covers scheduled golf carts and can be used to cover golf carts not falling within the parameters of golf carts for which coverage is automatically provided under the base form)
- Snowmobile - Liability Coverage Only (liability coverage for the off-premises use of scheduled snowmobiles)
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