BAP Towing Coverage

According to the Big “I” Virtual University faculty, the unanimous response is that this was part of the physical damage claim. As one faculty member put it, “This is what an AAA-type emergency service is for, as the endorsement says, a disabled vehicle. The coverage doesn’t have to be triggered by an otherwise covered loss. When a vehicle has been damaged in a collision or there’s an OTC loss that necessitates towing before repairs can be made, the cost of towing is included as part of the repair cost.”

For more opinions from the VU faculty, click here.


Transporting Kids to School Events

Parents often transport their kids (and others) to various school-related activities. Do you insure any parents, coaches or others who transport kids to games, practices, camps, etc.? Do you know if they use an owned or non-owned vehicle, including private passenger autos and vans? Think you have a liability exposure? Think you have coverage under a PAP?

Most students need transportation to and from school and after school activities throughout the year. But what if a parent has an accident while transporting his/her kids and others? Will a PAP respond to the claim? What if a parent drives a rented van—is there any PAP coverage?

The biggest exposure for parents and student drivers transporting students is the adequacy of limits. For school faculty members, since this involves a work (i.e., business) activity, coverage concerns are greater, particularly when operating non-owned autos.

To read more on a VU faculty discussion of these issues, click here.


Contractors’ CGL Policies and No Coverage

You insure a homebuilder. Several years after the sale, a home burns down due to faulty installation of some electrical wiring and your insured is sued. Does he have any coverage under the CGL policy and, if so, under which one? The answer to both questions is “it depends.”

Generally speaking, the policy that responds to a claim is the one in force at the time of the loss. Whether the damage to the contractor’s work(the home) is covered depends largely on whether the work that caused the loss arose was performed by the contractor or by a subcontractor. If the latter, there is usually coverage unless an exclusionary endorsement, such as the CG 22 94, is attached.

Without the endorsement, there is broad coverage for claims to the work of a general contractor if a subcontractor’s work is involved.

For more information, click here.

Bill Wilson (bill.wilson@iiaba.net) is Big “I” director of the Virtual University, an online learning center for agents and brokers.