Section 10.13 Exclusion g—Auto, Aircraft, and Watercraft Exclusion

LibraryInsurance Practice 2015

The CGL policy does not provide coverage for liability arising out of the use of an “auto,” as defined, aircraft, or watercraft. “Auto” means a land motor vehicle, trailer, or semi-trailer designed for travel on public roads. “Auto” does not include “mobile equipment.” There are various exceptions to the exclusion. Not excluded is damage arising out of a watercraft while ashore on the insured’s premises. The exclusion does not apply to damage caused by parking an unowned auto on the ways next to premises the insured owns or rents. The exclusion does not apply to damage arising out of certain operations of “mobile equipment” as defined.

In American States Insurance Co. v. Porterfield, 844 S.W.2d 13 (Mo. App. W.D. 1992), the insured sought coverage for liability when a trailer became unhitched, resulting in personal injury. It was contended by the insured that the negligent supervision of employees in hitching the trailer to the truck was a separate and concurrent act of negligence that did not fall within the auto exclusion of the CGL policy. The court held that the injuries arose out of the use of a truck, not from the negligent supervision, and there was no coverage for any injuries arising out of the automobile accident. See also Shelter Mut. Ins. Co. v. Politte, 663 S.W.2d 777 (Mo. App. E.D. 1983); Hartford Cas. Ins. Co. v. Budget Rent-A-Car of Mo., Inc., 864 S.W.2d 5 (Mo. App. W.D. 1993).

In several factual situations, the courts have held the “auto” exclusion inapplicable even though the underlying cause of action arose out of the use of a motor vehicle. In Centermark Properties, Inc. v. Home Indemnity Co., 897 S.W.2d 98 (Mo. App. E.D. 1995), the plaintiff was injured when his auto was struck by a...

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