Auto Hauler Cargo Question

From Markel

Most insurance companies write specified perils coverage on auto haulers- as there are too many times they pay losses for cargo coverage that are due to employee error and these insurance carriers want to limit their losses from these situations.

What about Collision of the load which is usually covered versus collision with a curb which is excluded. What is the difference?


Note this generally has to do with Flat Bed loads, as Van type trailers would enclose the cargo and the trailer would have to collide with the bridge so coverage is afforded. If on flat bed, the "covered property" would be exposed and this would allow coverage for that exposed "covered property" if it struck the bridge ("any other object") and the tractor ("vehicle") or trailer ("vehicle") did not. The bridge is considered "any other object", therefore coverage afforded. The exclusionary language of "Collision of Covered Property" is referring to collision that is proximately caused by collision with the "vehicle" (i.e., Load shift, improper securing of load, etc) or proximately caused by "collision with adjacent curbing, or collision with the rails or ties of street, steam or other railroad". If the "vehicle" overturns and "covered property" strikes any of the excluded objects there would be coverage for the "covered property" because the proximate cause of loss was the overturn, not the striking of the excluded objects.

The last explanation, if needed, is for "Collision will not include traverse off a road or pathway". Basically, if "vehicle" is chosen to be pulled from "road or pathway" being traveled as a parking area, shortcut, avoiding an animal, etc, and this rough ride causes damage to the "covered property" this will not be considered a "collision" and coverage will not be provided.

Collision of Covered Property is extended to include as a Peril, the accidental collision of the Covered Property with any other object, excluding collision with the vehicle, or collision with any portion of the road or pathway being traveled by the vehicle, or collision with adjacent curbing, or collision with the rails or ties of street, steam or other railroad. Collision will not include traverse off a road or pathway.