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Care, Custody, Control and the Auto Dealers Coverage Form


Published: Feb 01, 2015

Like most liability policies, the liability sections of the auto dealers coverage form (auto liability and general liability coverages) contain care, custody and control exclusions.

These exclusions preclude recovery for property damage to property on which, generally speaking, the insured should be carrying some form of direct property insurance. An auto dealership's primary exposure created by this exclusion is liability for damage to a customer's auto.

This exposure is best treated by garagekeepers coverage. Not only can the dealership's liability exposure as a bailee be handled, but the coverage can be extended with direct coverage options to pay for damage to a customer's auto without regard to the dealership's negligence. See technical report Garagekeepers Options on the Auto Dealers Coverage Form.

Another exposure excluded by the "CCC" exclusion in the general liability coverages section is the dealership's liability arising out of damage to the rented premises. Like the CGL policy, the auto dealers coverage form provides a limited amount of coverage for damage to rented premises. See CGL technical report Damage to Rented Premises.