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Section I – Covered Autos Coverages

Auto Liability Coverage

CA 00 25

Quick Links to Policy Sections:

I. Covered Autos Coverages

D. Covered Autos Liability Coverage

            1. Coverage (Insuring Agreement)

            2. Who Is An Insured

            3. Coverage Extensions – Supplementary Payments

            4. Exclusions

            5. Limits of Insurance

Actual Policy Language

Explanation

D. Covered Autos Liability Coverage

D.  Covered Autos Liability Coverage

The liability section is divided into two parts.

This Section I covers liability arising out of the ownership, maintenance or use of covered autos as identified by the Covered Auto Symbol used in the Declarations.

Section II – General Liability Coverages covers liability arising out of exposures other than covered autos – the general liability exposure for premises, products and completed operations.

1. Coverage

We will pay all sums an "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 covered "autos". 

1. Coverage (Covered Autos Insuring Agreement)

This liability insuring agreement applies to exposures arising out of the ownership, maintenance or use of covered autos, as identified by the Covered Auto Symbol used in the Declarations for liability coverage.

Texas courts have generally held that "use" is broader than "operation" and includes putting or bringing a thing into action or service and employing a thing for or applying a thing to a given purpose. 

The definition of “auto” includes any type of “land motor vehicle,” so this coverage applies to mobile equipment owned or used by the dealership. These exposures are excluded by Section II – General Liability Coverages.

The auto liability coverage is not restricted to autos used in auto dealership operations, as is the general liability coverage in Section II, with one exception. If Symbol 29 is used to cover the non-owned auto exposure (rather than Symbol 21), the policy only covers non-owned autos used in connection with the named insured’s auto dealership.

We will also pay all sums an "insured" legally must pay as a "covered pollution cost or expense" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of covered "autos". However, we will only pay for the "covered pollution cost or expense" if there is either "bodily injury" or "property damage" to which this insurance applies that is caused by the same "accident". 

Covered Pollution Clean-Up Costs

This provision makes it perfectly clear that pollution costs and expenses are covered if they result from a covered pollution claim.  This includes a specific grant of coverage for costs or expense arising out of a government demand to "test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants" when there is a covered pollution accident.

There are two exceptions to the pollution exclusion that can trigger this coverage: 

(1) escape of pollutants which are a part of the auto's operation, such as oil leakage or injury arising out of exhaust fumes, and

(2) pollution occurring as a result of damage to property containing a pollutant by a covered auto; e.g., a covered auto running into a gasoline storage tank. 

We have the right and duty to defend any "insured" against a "suit" asking for such damages or a "covered pollution cost or expense". However, we have no duty to defend any "insured" against a "suit" seeking damages for "bodily injury" or "property damage" or a "covered pollution cost or expense" to which this insurance does not apply. We may investigate and settle any claim or "suit" as we consider appropriate. Our duty to defend or settle ends when the Covered "Autos" Liability Coverage Limit of Insurance has been exhausted by payment of judgments or settlements. 

Duty To Defend

The company is obligated to defend the insured only in suits alleging damages covered by the policy.  In other words, no coverage means no defense.  However, insurance companies must pay close attention to the pleadings in a lawsuit, and may choose to defend if there is some reasonable basis on which a court might make the coverage fit the case. Notice that the company has the right, as well as the duty, to defend the insured.  The company controls the defense and decides which claims will be paid and which will be defended.

The company's obligation to defend the insured ends when the limit has been used up in the payment of judgments or settlements.  A judgment is a court decision awarding damages and a settlement is a final agreement between the parties.  The company cannot tender policy limits and abandon the insured in court.  However, once limits are exhausted, subsequent claims for damages arising out of the same occurrence would not be covered or defended.

It is clear from the limit of liability section and supplementary payments section that damages paid for BI and PD are the only amounts subject to the limit of liability, and therefore defense costs are paid in addition to the limit. 

2. Who Is An Insured

The following are "insureds" for covered "autos": 

2. Who Is An Insured (Covered Autos)

Each section of the policy contains a separate provision for Who Is An Insured.

This provision applies to liability arising out of the use of a covered auto. The scope of coverage for any insured depends on the symbol selection because that defines what is a covered auto. 

a. You for any covered "auto". 

a. The Named Insured

When Symbol 21 is used, the named insured(s) is covered for liability arising from any auto as that word is defined. 

b. Anyone else while using with your permission a covered "auto" you own, hire or borrow except: 

b. Permissive Users

Any person using the auto with the permission of the named insured is covered for the use of an owned, hired or borrowed auto, subject to the indicated exceptions shown below.

This applies whether the use of the auto is connected with the business or otherwise.

A 2004 Texas Supreme Court decision (Old American County Mutual vs. Renfrow) interpreted this permissive use provision, restricting coverage to use that is express or implied. A person may deviate from the express permission granted by the named insured and still be covered if the use is not a material or gross violation of the initial permission. A corporation should have a written policy statement outlining what persons have permission to operate company vehicles and the scope of that permission. An employee who uses a company vehicle on a regular basis should request that the permission be expressed in the broadest possible terms. (See Business Auto Policy technical report: "Permissive Users")

Texas courts have generally held that "use" is broader than "operation" and includes putting or bringing a thing into action or service and employing a thing for or applying a thing to a given purpose.

The operator of a nonowned auto as defined by Symbol 29 (except an employee – see paragraph “d” below) is not covered on the policy.

An employee is not considered an insured while operating an auto rented in the employee’s name on company business, but coverage can be added by attaching endorsement CA 20 54 (Employee Hired Autos). 

(1) The owner or anyone else from whom you hire or borrow a covered "auto".

This exception does not apply if the covered "auto" is a "trailer" connected to a covered "auto" you own. 

(1) Not Insured:  Owner of Hired Auto

There is no coverage for the owner of an auto hired or borrowed by the named insured. These persons, including lessors of autos under a long-term lease, may be covered with the attachment of one of several endorsements provided for that purpose, including endorsement CA 20 01 (Lessor – Additional Insured and Loss Payee).

One exception to this exception is that coverage does apply for the owner of a trailer when connected to an auto owned by the named insured. 

(2) Your "employee" if the covered "auto" is owned by that "employee" or a member of his or her household. 

(2) Not Insured – Employee For Own Auto Leased to the Employer

Even if an employer enters into a formal lease arrangement with an employee for business use of the employee's auto, the policy will not cover the employee's liability. If coverage is desired for an auto owned by an employee and leased to the named insured, attach endorsement CA 99 47 (Employee as Lessor).
See technical article "Ownership Problems" in the BAP section.

(3) Someone using a covered "auto" while he or she is working in a business of selling, servicing or repairing "autos" unless that business is yours. 

(3) Not Insured – Employees of Other Auto-Related Businesses

Persons in an auto-related business other than the one covered on this policy should be protected with their own liability policy. 

(4) Your customers. However, if a customer of yours:

(a) Has no other available insurance (whether primary, excess or contingent), they are an "insured" but only up to the compulsory or financial responsibility law limits where the covered "auto" is principally garaged.

(b) Has other available insurance (whether primary, excess or contingent) less than the compulsory or financial responsibility law limits where the covered "auto" is principally garaged, they are an "insured" only for the amount by which the compulsory or financial responsibility law limits exceed the limit of their other insurance. 

(4) Not Insured – Customers

A customer who is operating a covered auto (for example, while driving a demonstrator, or using a loaned or rented auto while theirs is in the shop) is not an insured person unless they have no auto liability on their own behalf to cover the accident, in which case only the minimum financial responsibility limits would apply. This of course does not affect coverage for the named insured or any other insured while a customer is driving.

This exception can be removed by attaching endorsement CA 25 15 (Full Covered Autos Liability Limit for Customers) and charging an additional premium. 

(5) A partner (if you are a partnership), or a member (if you are a limited liability company), for a covered "auto" owned by him or her or a member of his or her household. 

(5) Not Insured – Partner or Member for Own Auto

An auto owned by a partner of a partnership or a member of a limited liability company should not be scheduled on the policy since this exception eliminates coverage for the partner's liability while using his or her own vehicle. See the technical report "Ownership Problems" for a discussion on the hazards of including a partner's auto on the policy.

However, the policy will respond for the partnership's or LLC’s liability arising out of the use of the partner's or member’s auto as part of the nonowned auto coverage when Symbol 21 or 29 is used. 

c. Anyone liable for the conduct of an "insured" described above but only to the extent of that liability. 

c.  Others

This provides coverage for the "vicarious liability" of others arising out of the conduct of an insured person for which liability coverage applies.

See endorsement CA 20 48 (Designated Insured) 

d. Your "employee" while using a covered "auto" you do not own, hire or borrow in your business or your personal affairs.

d.  Employee Using Nonowned Auto (including auto owned by the employee)

This provides coverage for an employee while using his or her own auto, a customer’s auto or any other auto not owned, hired or borrowed by the named insured, when the nonowned auto is being used in the named insured’s business or personal affairs. 

However, if the employer leases (hires) the employee’s auto, the employee is not covered – see paragraph (2) above.

Additional Insureds

See endorsements CA 20 48 (Designated Insured endorsement) and CA 20 49 (Additional Insured – Garages – Grantor of Franchise). 

3. Coverage Extensions

3. Coverage Extensions (Covered Autos)

a. Supplementary Payments

We will pay for the "insured":

a. Supplementary Payments

Payments under this section are not charged against the limit of liability. There is no limit applicable to these payments.

(1) All expenses we incur. 

(1) Defense Expenses

The company is obligated to defend the insured in an action covered by the policy and the expenses to do so can be high. This would include legal fees, investigations, expert witnesses and court costs. 

(2) Up to $2,000 for the cost of bail bonds (including bonds for related traffic law violations) required because of an "accident" we cover. We do not have to furnish these bonds. 

(2) Bail Bonds

(3) The cost of bonds to release attachments in any "suit" against the "insured" we defend, but only for bond amounts within our Limit of Insurance. 

(3) Release of Attachment Bonds

The company is not obligated to provide these bonds, only pay for them, to enable the insured to get the attachment on his equipment or other property "released" by the court.

(4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $250 a day because of time off from work. 

(4) Reasonable Expenses

If an insured is asked to participate in the defense of a claim, the company will pay all direct expenses incurred. If the insured can show a loss of earnings, he can collect up to $250 a day. This latter benefit is not an automatic payment. Taking a day of leave to be in court is not considered a loss of earnings for a salaried individual.

(5) All court costs taxed against the "insured" in any "suit" against the "insured" we defend. However, these payments do not include attorneys' fees or attorneys' expenses taxed against the "insured".

(5) Court Costs

When an insured is on the losing end of a lawsuit, the insured may be required to pay court costs as part of the judgment. Those costs are covered by this supplementary coverage. However, the insured may also be required to pay the opposing party's attorney's fees. These costs are not covered by this supplementary coverage; they would be covered as part of the liability coverage and therefore subject to the limit of liability. 

(6) All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "insured" we defend; but our duty to pay interest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance.

(6) Post-Judgment Interest

Unlike the Commercial General Liability policy, prejudgment interest is not considered a supplementary payment in the Auto Dealers policy. It would be considered part of "legal damages" and therefore covered within the limit of liability. 

These payments will not reduce the Limit of Insurance.

Payments under Supplementary Payments section are not charged against the limit of liability. There is no limit applicable to these payments.

b. Out-of-state Coverage Extensions

While a covered "auto" is away from the state where it is licensed, we will:

(1) Increase the Limit of Insurance for Covered Autos Liability Coverage to meet the limits specified by a compulsory or financial responsibility law of the jurisdiction where the covered "auto" is being used. This extension does not apply to the limit or limits specified by any law governing motor carriers of passengers or property.

(2) Provide the minimum amounts and types of other coverages, such as no-fault, required of out-of-state vehicles by the jurisdiction where the covered "auto" is being used.


We will not pay anyone more than once for the same elements of loss because of these extensions. 

b. Out-of-state Coverage Extensions

The limits and coverage will modify themselves to comply with financial responsibility or other laws in any state or province in which a covered accident may occur.

4. Exclusions

This insurance does not apply to any of the following: 

4. Exclusions (Covered Autos)

These exclusions apply only to the auto exposures. For the most part, they duplicate exclusions found in the Business Auto Policy, with a few exclusions related specifically to auto dealerships.

a. Expected Or Intended Injury

"Bodily injury" or "property damage" expected or intended from the standpoint of the "insured". 

a. Expected Or Intended Injury

For this exclusion to apply, the injury or damage must be intended, not just the act that caused it.

Because of the separation of insureds provision, this exclusion would not apply to an insured who might be liable for the act of another insured. For example, an employer (the named insured) could be held liable for the intentional act of an employee, and the policy will respond.

The exception found in Section II for general liability exposures relating to the use of reasonable force for protection is not included here.

b. Contractual

Liability assumed under any contract or agreement. But this exclusion does not apply to liability for damages:

(1) Assumed in a contract or agreement that is an "insured contract" provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement; or

(2) That the "insured" would have in the absence of the contract or agreement.

b. Contractual Liability

By exception to this exclusion, the policy provides broad contractual liability coverage which arises from auto exposures. Unless otherwise excluded, the exception allows coverage for the liability of others which the insured assumes in most any type of auto-related business contract.

The definition of insured contract is key to the scope of coverage provided by this exception. Paragraph (2) of the exception further clarifies that the exclusion does not apply if the insured would be liable even in the absence of a contract or agreement.

The types of contracts listed in the Definition usually contain a "hold harmless" clause in which the insured agrees to indemnify someone for defense costs and sums for which the other party may be legally liable. The agreement by the insurance company to pay on behalf of the insured for this assumed liability does not require them to actively defend the other party. Covering the insured's contractual liability is not the same as if the other party were an additional insured, making them a party to the benefits of the insurance policy directly.

Even though auto lease and rental agreements are covered (paragraph 7 of Definition), coverage would extend only to the hold harmless clause in the rental agreement in which the renter agrees to indemnify the lessor for third party liability in the event of an accident. It would not cover the agreement to be responsible for damage to the rented auto, since the "care, custody and control" exclusion would apply. 

c. Workers' Compensation

Any obligation for which the "insured" or the "insured's" insurer may be held liable under any workers' compensation, disability benefits or unemployment compensation law or any similar law. 

c. Workers' Compensation

Since workers' compensation, disability and unemployment compensation benefits may be damages for which the insured is legally liable, it is necessary to exclude them here.

d. Employee Indemnification And Employer's Liability

"Bodily injury" to:

(1) An "employee" of the "insured" arising out of and in the course of:

(a) Employment by the "insured"; or

(b) Performing the duties related to the conduct of the "insured's" business; or

(2) The spouse, child, parent, brother or sister of that "employee" as a consequence of Paragraph (1) above.

This exclusion applies:

(a) Whether the "insured" may be liable as an employer or in any other capacity; and

(b) To any obligation to share damages with or repay someone else who must pay damages because of the injury.


But this exclusion does not apply to "bodily injury" to domestic "employees" not entitled to workers' compensation benefits or to liability assumed by the "insured" under an "insured contract". For the purposes of Covered Autos Liability Coverage, a domestic "employee" is a person engaged in household or domestic work performed principally in connection with a residence premises.

4. Employee Indemnification and Employer's Liability

These exposures are covered by Employers' Liability insurance in Part II of the Workers' Compensation policy. The exclusion applies even if the employer is liable in some capacity other than the employer-employee relationship, and to claims against the employer from a third party who is sued by the employee. However, the exclusion only applies if the injury arises out of and in the course of employment by the insured; coverage would apply if the employee sued the employer for an accident occurring while off-duty.

The exclusion does not apply to injury to domestic employees, nor to liability assumed by the insured under an insured contract (see Exclusion “b”). These exposures are excluded by the standard workers' compensation policy.

The exclusion can be amended so that it does not apply to leased workers by attaching endorsement CA 23 25 (Coverage for Injury to Leased Workers).

e. Fellow Employee

"Bodily injury" to:

(1) Any fellow "employee" of the "insured" arising out of and in the course of the fellow "employee's" employment or while performing duties related to the conduct of your business; or

(2) The spouse, child, parent, brother or sister of that fellow "employee" as a consequence of Paragraph (1) above.

e. Fellow Employee

Since an employee can be an insured as a permissive user of a covered auto, this exclusion is necessary to avoid liability protection for injuries that should be covered by workers' compensation.

In Texas, an injured employee who collects workers’ compensation benefits is barred from suing a fellow employee for the injury. Employers who do not carry workers' compensation insurance leave employees exposed to personal liability claims which may not be covered by the employee's own liability insurance (PAP or Homeowners). This exclusion applies only to injuries arising out of and in the course of employment, so the employee would be covered while involved in non-business activities.

This exclusion can be deleted by attaching endorsement CA 20 55 (Fellow Employee Coverage) for all employees, or endorsement CA 20 56 (Fellow Employee Coverage for Designated Employees/Positions) for designated employees, positions or titles.

See Workers’ Compensation Technical Report Injuring Fellow Employees.

f. Care, Custody Or Control

"Property damage" to or "covered pollution cost or expense" involving:

(1) Property owned, rented or occupied by the "insured";

(2) Property loaned to the "insured";

(3) Property held for sale or being transported by the "insured"; or

(4) Property in the "insured's" care, custody or control.

But this exclusion does not apply to liability assumed under a sidetrack agreement. 

f. Care, Custody, or Control

This exclusion prevents recovery for property damage to property on which, generally speaking, the insured should be carrying some form of direct property insurance.

The exclusion for property in the "care, custody or control" of the insured prevents coverage for damage to a customer's auto, creating a need for garagekeepers coverage.

The exclusion for property “held for sale” by the insured prevents coverage for damage to autos on consignment, creating a need for physical damage coverage. 

g. Leased Autos

Any covered "auto" while leased or rented to others. But this exclusion does not apply to a covered "auto" you rent to one of your customers while their "auto" is left with you for service or repair. 

g. Leased Autos

Dealers who are in the business of renting or leasing autos, other than to customers while their autos are in the shop, must obtain other insurance for those operations. 

h. Pollution

"Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants": 

h. Auto Pollution

This pollution exclusion applies to auto exposures.

(1) That are, or that are contained in any property that is:

(a) Being transported or towed by, handled, or handled for movement into, onto or from, the covered "auto";


(b) Otherwise in the course of transit by or on behalf of the "insured"; or

(c) Being stored, disposed of, treated or processed in or upon the covered "auto"; 

Part (1) deals with pollutants escaping from a covered auto during transportation by a covered auto, or during loading or unloading of a covered auto or while being stored in a covered auto. The insured would still have coverage for third party liability arising from a collision with another auto carrying pollutants.

This part of the exclusion can be deleted with the attachment of endorsement CA 99 55 (Pollution Liability - Broadened Coverage for Covered Autos – Auto Dealers Coverage Form).

(2) Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are accepted by the "insured" for movement into or onto the covered "auto"; or

(3) After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of or abandoned by the "insured". 

Parts (2) and (3) exclude incidents occurring prior to loading or after unloading a covered auto.

Paragraph (1) above does not apply to fuels, lubricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical functioning of the covered "auto" or its parts, if the "pollutants" escape, seep, migrate, or are discharged, dispersed or released directly from an "auto" part designed by its manufacturer to hold, store, receive or dispose of such "pollutants".

Exception:  Normal Pollutants In Auto

This exception to the exclusion affords coverage for escape of pollutants which are a part of the auto's operation, such as oil leakage, spillage from the fuel tank in an accident, or injury arising out of exhaust fumes. 

Paragraphs (2) and (3) above of this exclusion do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with respect to "pollutants" not in or upon a covered "auto" if:

(a) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and

(b) The discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused directly by such upset, overturn or damage.

Exception:  Collision With Property

This exception affords coverage if pollution occurs as a result of damage to the property containing a pollutant by a covered auto; e.g., a covered auto running into a gasoline storage tank on someone else's property.

Covered Pollution Cost or Expense

See the part of the insuring agreement that covers pollution clean-up costs when the pollution is caused by one of these exceptions.

i. Racing

Covered "autos" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. This insurance also does not apply while that covered "auto" is being prepared for such a contest or activity. 

i. Racing

This is an important exclusion for some dealers. A dealer may loan a car to be "used" in a race as a flag car or starter. A service department may service autos used in racing or stunting. Coverage should be arranged under a special policy for these exposures. 

j. Handling Of Property

"Bodily injury" or "property damage" resulting from the handling of property:

(1) Before it is moved from the place where it is accepted by the "insured" for movement into or onto the covered "auto"; or

(2) After it is moved from the covered "auto" to the place where it is finally delivered by the "insured".

k. Movement Of Property By Mechanical Device

"Bodily injury" or "property damage" resulting from the movement of property by a mechanical device (other than a hand truck) unless the device is attached to the covered "auto". 

j. and k. Handling of Property (Loading and Unloading)

Because "use" of an auto includes loading and unloading, these two exclusions are necessary to limit the boundaries of coverage provided by the liability coverage for covered autos versus coverage provided by the general liability section of the policy. The general liability section contains an exclusion of auto-related exposures that uses the defined phrase “loading and unloading.” The definition contains the same wording as this exclusion to make it clear which section of the policy applies and to avoid any gaps between the two sections.

When a mechanical device other than a hand truck is used to unload an auto, the covered autos section applies only if the device is attached to the auto. For example, an accident arising out of a crane attached to a covered auto will be covered by the covered autos section; on the other hand, an accident involving a forklift will be excluded by the covered autos section but covered by the general liability section.

See the BAP Technical Report Loading and Unloading.

l. Defective Products

"Property damage" to any of your "products", if caused by a defect existing in your "products" or any part of your "products", at the time it was transferred to another. 

l. Defective Products

This exclusion is repeated in the general liability section, but that exclusion can be removed by endorsement.

m. Work You Performed

"Property damage" to "work you performed" if the "property damage" results from any part of the work itself or from the parts, materials or equipment used in connection with the work. 

m. Work You Performed

This exclusion is repeated in the general liability section. It may be the most troublesome exclusion on the auto dealers policy, creating confusion and ill will when used to deny a claim. The main problem is determining the extent of the work performed and attempting to limit the exclusion only to the work. See technical report Faulty Work Exclusion.

n. Damage To Impaired Property Or Property Not Physically Damaged

"Property damage" to "impaired property" or other property not physically damaged if caused by:

(1) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms.

(2) A defect, deficiency, inadequacy or dangerous condition in your "products" or "work you performed". But this exclusion, n.(2), does not apply if the loss of use was caused by sudden and accidental damage to or destruction of your "products" or "work you performed" after they have been put to their intended use. 

n. Damage to Impaired Property or Property Not Physically Injured

This exclusion is repeated in the general liability section.

The exclusion affects only property damage coverage and has several purposes, but applies primarily to loss of use claims.

First, it excludes damage to someone else's property that incorporates the insured's product or work, if their property can be restored to full use by replacing the insured's product or work (see definition of "impaired property"). For example, if the dealer’s repair shop replaces a component in a customer’s auto and that component fails to perform properly, requiring another visit to the shop, any resulting claim for loss of use of the auto is not covered.

Second, the exclusion blocks coverage for failure of the insured to abide by the terms of a contract. For instance, if the insured had promised to deliver an auto by a given date, and then failed to deliver the auto on time, any resulting claim by the purchaser for delay or lost income would not be covered.

o. Products Recall

Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of your "products" or "work you performed" or other property of which they form a part, if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. 

o. Product Recall

This exclusion is repeated in the general liability section.

The exclusion precludes coverage for loss of use claims arising out of a product recall.

p. War

"Bodily injury" or "property damage" arising directly or indirectly out of:

(1) War, including undeclared or civil war;

(2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or

(3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these.

p. War

q. Acts, Errors Or Omissions

"Bodily injury" or "property damage" arising out of "acts, errors or omissions".

q. Acts, Errors or Omissions

Coverage for these types of losses are covered in Section III – Acts, Errors or Omissions Liability Coverages.

5. Limit Of Insurance – Covered Autos Liability

For "accidents" resulting from the ownership, maintenance or use of covered "autos", the following applies:

Regardless of the number of covered "autos", "insureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or expense" combined resulting from any one "accident" involving a covered "auto" is the Limit of Insurance for Covered "Autos" Liability Coverage shown in the Declarations.

Damages and "covered pollution cost or expense" payable under the Limit of Insurance for Covered "Autos" Liability Coverage are not payable under any applicable Limits of Insurance under Section II – General Liability Coverages or Section III – Acts, Errors Or Omissions Liability Coverage.


All "bodily injury", "property damage" and "covered pollution cost or expense" resulting from continuous or repeated exposure to substantially the same conditions will be considered as resulting from one "accident".

No one will be entitled to receive duplicate payments for the same elements of "loss" under this Coverage Form and any Auto Medical Payments Coverage endorsement, Uninsured Motorists Coverage endorsement or Underinsured Motorists Coverage endorsement attached to this Coverage Part.

5. Limit of Insurance

The single limit of liability for auto liability exposures is shown in the Declarations and applies to each accident. The limit is the most that can be paid for any one accident regardless of the number of covered autos, insured persons or vehicles involved in the accident, including any covered pollution cost or expense.

The last paragraph makes it clear that a person can’t collect under other coverages on the policy for the same types of loss.