Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Ccc Exclusion Under Business Auto Policy.

Workers Compensation Law Discussion

Ccc Exclusion Under Business Auto Policy.

Postby Driden » Fri Nov 25, 2016 11:47 pm

Kristan:  I insure a for profit ambulance company that leases garage space from my local volunteer fire department(who I also insure)  One evening an ambulance driver while backing their ambulance into the garage stuck & damaged the exterior of the building.  This building is occupied by multiple tenants of the fire department.  The auto insurance carrier for the ambulance company denied payment for the exterior damage they caused to the building under the CCC exclusion on the business auto policy.  I certainly can get the damage to the building paid under the fire department's property policy and the ambulance company has agreed to pay the deductible, but I don't want this to happen again.   If I add the broad form property damage endorsement to the Ambulance Company's GL, will it pick up this exposure should this happen again, or is there another way to delete the CCC exclusion from the business auto.  Thanks!

ANSWER: Kim;

Sorry for the delayed response, technical issues on my end prevented me from logging on and answering your question. No endorsement on a GL policy will provide you with an answer. I'm surprised that the BAP carrier denied coverage, when the vehicles are being driven aren't they always in the CCC of the ambulance co.? Strange. I think you're going to have to speak to your underwriter and ask that the CCC exclusion be deleted. In almost every situation, if something is excluded, it can be bought back somewhere else. The best person to answer your question is the BAP underwriter. I know this is a tough class of business to place so be careful telling the underwriter you'll move the account because you have very few options. With that said, I'd check out your other options and see if moving it at renewal is possible. That may be the answer. I hope this has helped! My technical issues are solved so if there's anything else I can answer for you feel free to email me again. Kristen

---------- FOLLOW-UP ----------

Kristen, the auto carrier denied the Property damage to the building under the BAP because the ambulance company has a rental lease on a portion of the interior of the building with the Fire Department.  Because they rent the building the BAP carrier considers the building to be in their CCC and denied coverage under that exclusion.  (Similar to hitting your own garage with your own car; your HO would have to pay for the damage to the garage & your auto policy would have to pay for damage to your car).  But in this situation, the ambulance company doesn't own the building so there is no  property policy to respond to vehicle damage(other than that of the fire department).  There has got to be a way to get this coverage back.  What if you have a contractor who rents warehouse space and during the course of the day backs his truck into the warehouse door while unloading.  The Landlord of the warehouse will certainly look to the contract to repair the building but because there is a lease agreement, the building is excluded under the CCC of the auto.
Driden
 
Posts: 37
Joined: Sun Mar 23, 2014 9:52 am

Ccc Exclusion Under Business Auto Policy.

Postby Fairleigh » Wed Nov 30, 2016 1:30 am

Kristan:  I insure a for profit ambulance company that leases garage space from my local volunteer fire department(who I also insure)  One evening an ambulance driver while backing their ambulance into the garage stuck & damaged the exterior of the building.  This building is occupied by multiple tenants of the fire department.  The auto insurance carrier for the ambulance company denied payment for the exterior damage they caused to the building under the CCC exclusion on the business auto policy.  I certainly can get the damage to the building paid under the fire department's property policy and the ambulance company has agreed to pay the deductible, but I don't want this to happen again.   If I add the broad form property damage endorsement to the Ambulance Company's GL, will it pick up this exposure should this happen again, or is there another way to delete the CCC exclusion from the business auto.  Thanks!

ANSWER: Kim;

Sorry for the delayed response, technical issues on my end prevented me from logging on and answering your question. No endorsement on a GL policy will provide you with an answer. I'm surprised that the BAP carrier denied coverage, when the vehicles are being driven aren't they always in the CCC of the ambulance co.? Strange. I think you're going to have to speak to your underwriter and ask that the CCC exclusion be deleted. In almost every situation, if something is excluded, it can be bought back somewhere else. The best person to answer your question is the BAP underwriter. I know this is a tough class of business to place so be careful telling the underwriter you'll move the account because you have very few options. With that said, I'd check out your other options and see if moving it at renewal is possible. That may be the answer. I hope this has helped! My technical issues are solved so if there's anything else I can answer for you feel free to email me again. Kristen

---------- FOLLOW-UP ----------

Kristen, the auto carrier denied the Property damage to the building under the BAP because the ambulance company has a rental lease on a portion of the interior of the building with the Fire Department.  Because they rent the building the BAP carrier considers the building to be in their CCC and denied coverage under that exclusion.  (Similar to hitting your own garage with your own car; your HO would have to pay for the damage to the garage & your auto policy would have to pay for damage to your car).  But in this situation, the ambulance company doesn't own the building so there is no  property policy to respond to vehicle damage(other than that of the fire department).  There has got to be a way to get this coverage back.  What if you have a contractor who rents warehouse space and during the course of the day backs his truck into the warehouse door while unloading.  The Landlord of the warehouse will certainly look to the contract to repair the building but because there is a lease agreement, the building is excluded under the CCC of the auto.
Fairleigh
 
Posts: 43
Joined: Sun Mar 02, 2014 10:58 am

Ccc Exclusion Under Business Auto Policy.

Postby Wanahton » Fri Dec 02, 2016 5:00 am

Kim; Sorry for the delayed response but I reached out to a few underwriters trying to find a solution for you and they all recommended a Legal Liability Property Policy with Special Form.

They recommended the following forms;

CP 00 40 06 07 Leagal Liability

CP 10 30 06 07 Special Form

Neither have a CCC exclusion. So, it appears that your particular sitiuation would be covered if these were in place. I hope this helps! If not, feel free to email me again and I'll keep asking around if I don't have the answer!

Kristen
Wanahton
 
Posts: 48
Joined: Thu Feb 06, 2014 9:14 am


Return to Workers Compensation

 


  • Related topics
    Replies
    Views
    Last post
cron