(October 2019)
CA 20 15–Mobile Equipment modifies the Business Auto or the Motor Carrier Coverage Form so that its Covered Auto Liability (10 13 change) and Physical Damage coverages apply to mobile equipment.
This endorsement contains two schedules. The first lists the coverages available. A premium in the far-right column shows that the coverage applies. The number of the vehicle(s) to which that coverage applies must be entered in the second column. The third column contains the necessary limit and deductible information similar to the policy declarations.
Related Article: CA DS 03–Business Auto Declarations
The vehicle number entered in the first schedule is entered in the second schedule and the description of the covered vehicle is entered next to it.
Vehicles listed and described on the endorsement schedule are treated as covered autos. However, there is an important liability coverage limitation. Coverage does not apply to mobile equipment operations loss exposures. This means that liability coverage applies to the described mobile equipment only while it is being used as a vehicle. There is no coverage when an accident is due to the actual operation of the equipment that is a part of the vehicle.
Note: This limitation applies only to liability coverage, not to physical damage.
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Example: Lana's Landscaping's Business Auto Coverage Form insures its eight vehicles. CA 20 15–Mobile Equipment was added to cover a backhoe and a transporting vehicle with crawler treads on which a scissors-lift is mounted. Scenario 1: Lana is working on two jobsites on both sides of an interstate highway. The scissors-lift vehicle completes its work on one side of the road and must cross the highway to work on the other. The driver hurries because the work on the other side must also be finished that day. He rolls out without waiting for the flagger to stop traffic and strikes an SUV. The modified Business Auto Coverage Form responds to this loss. Scenario 2: The scissors-lift vehicle is already parked on the other side of the highway, with its outriggers fully extended and ready to operate. However, when the lift portion is lowered, it malfunctions and falls. Part of the lift breaks off and strikes a subcontractor's employee working on the same jobsite. The modified Business Auto Coverage Form does not respond to this loss, even though the scissors-lift was listed. Because the accident involved only the lift, Lana's Commercial General Liability (CGL) Coverage Form covers this mobile equipment-related incident. Coverage under the physical damage portion of the policy may apply to the damage to the scissors lift, depending on the details of how the loss occurred and the type of physical damage coverage purchased. |