Under a CGL policy, when is mobile equipment covered?

Under a CGL policy, when is mobile equipment covered?

• A. While in storage
• B. While on a covered automobile
• C. During transportation
• D. When used on private property

Answer: (B)

Mobile equipment is covered under a Commercial General Liability (CGL) policy primarily when it is being used in conjunction with a covered automobile. This means that when mobile equipment is being transported on a vehicle that is covered by the auto section of the CGL policy, it is insured against the risks typically covered in motor vehicle scenarios, such as accidents or damage that may occur during the transport. Understanding the context of mobile equipment and its legal classification is crucial. Mobile equipment generally refers to vehicles or equipment that can be used for different purposes, typically not covered under standard automobile policies. The coverage extends to situations where the mobile equipment is actively involved in operations related to the auto, which is why option regarding being on a covered automobile is appropriate. In contrast, mobile equipment may have limitations that apply when it is in storage, during transportation without the linkage to a covered automobile, or when used exclusively on private property, as these scenarios may lead to differing risk assessments and coverage under liability insurance policies. The specific conditions of each situation can dictate whether coverage applies, thus emphasizing the importance of understanding the terms of a CGL policy fully.

Mobile equipment is covered under a Commercial General Liability (CGL) policy primarily when it is being used in conjunction with a covered automobile. This means that when mobile equipment is being transported on a vehicle that is covered by the auto section of the CGL policy, it is insured against the risks typically covered in motor vehicle scenarios, such as accidents or damage that may occur during the transport.

Understanding the context of mobile equipment and its legal classification is crucial. Mobile equipment generally refers to vehicles or equipment that can be used for different purposes, typically not covered under standard automobile policies. The coverage extends to situations where the mobile equipment is actively involved in operations related to the auto, which is why option regarding being on a covered automobile is appropriate.

In contrast, mobile equipment may have limitations that apply when it is in storage, during transportation without the linkage to a covered automobile, or when used exclusively on private property, as these scenarios may lead to differing risk assessments and coverage under liability insurance policies. The specific conditions of each situation can dictate whether coverage applies, thus emphasizing the importance of understanding the terms of a CGL policy fully.