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Mobile Equipment on the Auto Dealers Coverage Form

Published: Feb 01, 2015

A member called IIAT's technical experts to ask how a forklift owned by a truck dealership would be covered on a garage policy. (Note: The conclusions in this report also apply to the auto dealers coverage form.) The agent's customer uses the forklift to pick up spilled cargo boxes of parts and engines.

Everybody knows a forklift falls within the definition of mobile equipment and is thus covered automatically on a CGL policy. But a quick glance at the definitions section of the auto dealers coverage form reveals that there is no definition for mobile equipment. The definition of auto is "a land motor vehicle, trailer or semitrailer," clearly expansive enough to include a forklift. But is it a covered auto? That depends on the symbol used to determine autos covered by the policy. If symbol 21 is used, then the policy covers any auto without description or separate charge. However, if symbol 27 is used, then all autos must be scheduled, including items of mobile equipment like the forklift.

To review other unusual differences and gaps found in the auto dealers coverage form, see technical report Closing Gaps in the Auto Dealers Coverage Form.