Mobile Equipment: Auto Insurance Coverage And Exclusions

Mobile equipment insurance is a type of insurance coverage for mobile equipment that does not qualify as a motor vehicle. Mobile equipment typically remains on the property of the insured and is not meant to be driven regularly on roads. Mobile equipment includes tractors, forklifts, and excavators. This type of insurance allows owners to protect themselves against risks such as collisions or theft. Mobile equipment insurance can be added to a business auto policy to cover heavy machinery or earth-moving equipment in the event of an accident on a public road.

Mobile equipment is for vehicles designed for use off public roads

Mobile equipment is a term used in both commercial general liability (CGL) and commercial auto policies. It refers to vehicles and machinery that are designed for use off public roads. This includes vehicles and machinery used in industries such as construction, farming, and landscaping. Examples of mobile equipment are tractors, bulldozers, farm machinery, diggers, forklifts, loaders, resurfacing equipment, and dump trucks. These vehicles may be self-propelled but are not considered automobiles unless state laws require motor vehicle insurance for them.

Vehicles that fall under the category of mobile equipment are typically covered by a general liability policy for bodily injury or property damage. On the other hand, vehicles designed for travel on public roads are considered "autos" and are subject to different insurance policies, such as business auto coverage forms or motor carrier coverage forms.

The distinction between "mobile equipment" and "autos" is important for insurance purposes. Mobile equipment endorsement can be added to a business auto policy to extend coverage to mobile equipment driven on a public road. This is important because most states require liability insurance for any land vehicles using public roads, and accidents involving mobile equipment on public roads can pose higher risks due to their size and maneuverability.

It is worth noting that the definition of "mobile equipment" can vary and is subject to certain exceptions. For example, vehicles with permanently attached equipment, such as generators, welding equipment, or cherry pickers, are also considered mobile equipment even if they cannot move under their own power. Additionally, the intended use and design of the vehicle play a crucial role in determining whether it is considered "mobile equipment" or an "auto."

In summary, mobile equipment refers to vehicles and machinery designed for use off public roads, and it is a distinct category from "autos" in the world of auto insurance. Understanding the difference between the two is essential for ensuring proper insurance coverage, especially for businesses operating in industries that frequently use mobile equipment.

Autos are for vehicles designed for travel on public roads

The distinction between "autos" and "mobile equipment" is important in the insurance industry, especially in commercial auto insurance and commercial general liability (CGL) policies. The difference between the two is primarily based on the vehicle's design and intended use:

Autos, in the context of insurance, refer to vehicles that are "designed for travel on public roads." These are typically vehicles that we see being used for transportation on streets, highways, or roadways. Examples include cars, trucks, SUVs, and vans. These vehicles are classified as automobiles and are subject to motor vehicle insurance requirements and laws. Liability coverage for autos is generally provided through business auto coverage forms, motor carrier coverage forms, or auto dealer coverage forms.

Mobile Equipment is for Off-Road Use

On the other hand, "mobile equipment" refers to vehicles and machinery designed for use principally off public roads. This includes heavy equipment and construction vehicles such as bulldozers, tractors, farm machinery, diggers, forklifts, loaders, and excavators. Even if some of these vehicles are self-propelled, they are not considered automobiles for insurance purposes unless they are subject to specific motor vehicle insurance laws or requirements in a particular state. Mobile equipment insurance is a separate type of coverage that businesses can add to their auto insurance policies to protect against risks such as collisions or theft when using this equipment off public roads.

While the intended use of the vehicle is a key factor, it is important to note that the determination of whether a vehicle is an "auto" or "mobile equipment" can be complex and subject to exceptions. The specific definitions, insurance laws, and exceptions can vary by state, so it is essential to consult with insurance professionals and legal experts to ensure proper coverage.

Mobile equipment insurance covers machinery like tractors and forklifts

The distinction between "auto" and "mobile equipment" is crucial in the insurance industry. "Autos" are vehicles designed for travel on public roads, while "mobile equipment" refers to vehicles designed for use primarily off public roads. Mobile equipment insurance provides coverage for bodily injury or property damage arising from the use of this equipment.

Businesses that use mobile machinery, such as tractors and forklifts, in their operations can benefit from mobile equipment insurance. This type of insurance protects against risks such as collisions and theft, which are similar to those faced by cars and trucks on the road. By having mobile equipment insurance, businesses can ensure they are covered in the event of an accident or incident involving their heavy machinery.

It is worth noting that some trailers used for business may also fall under the category of mobile equipment and can be covered by commercial auto insurance when pulled by an insured vehicle. However, this classification can vary depending on factors such as industry, trailer type, size, and intended use.

To summarise, mobile equipment insurance is specifically designed to cover machinery like tractors and forklifts, which are not considered automobiles and are intended for off-road use. This type of insurance provides essential protection for businesses that rely on such equipment in their daily operations.

Mobile equipment insurance is needed for vehicles exposed to the same risks as cars

Mobile equipment insurance is a type of insurance coverage for mobile equipment that does not qualify as a motor vehicle. This includes vehicles such as tractors, forklifts, excavators, earthmovers, diggers, farm machinery, and bulldozers. These vehicles are designed for use principally off public roads and are often used in industries such as construction, farming, and landscaping. While they are not meant to be driven regularly on streets or highways, they are still exposed to many of the same risks as cars. For example, a tractor could be involved in a collision, or a forklift could be stolen from the owner's property.

The distinction between "auto" and "mobile equipment" is important in the insurance industry, as different policies apply to each category. Vehicles that are "designed for travel on public roads" are typically considered "autos", while vehicles that are "designed for use principally off public roads" are considered "mobile equipment". This distinction is crucial because the insurance coverage and liability differ between the two categories.

In the past, mobile equipment was covered under the commercial general liability (CGL) policy. However, with the new definitions introduced by the Insurance Services Offices Inc. (ISO), some vehicles that were previously considered mobile equipment may now fall under the category of commercial vehicles or "autos". This means that they would require a separate business auto policy for liability coverage.

Despite these changes, mobile equipment insurance is still necessary for vehicles that are exposed to similar risks as cars. This type of insurance allows owners to protect themselves against financial losses in the event of accidents, theft, or damage involving their mobile equipment. It is important for businesses to review their insurance policies and ensure that their mobile equipment is adequately covered, as the specific coverage may vary depending on the state and industry.

Mobile equipment endorsement extends auto insurance coverage to non-auto mobile equipment

Mobile equipment endorsement is liability insurance that can be added to a business auto policy to cover non-auto mobile equipment. This endorsement extends coverage to heavy machinery or earthmoving equipment, such as tractors, forklifts, and bulldozers, when they are driven on public roads. It is important to note that these types of machinery are not considered automobiles unless they are subject to motor vehicle insurance requirements in the policyholder's state.

The distinction between "auto" and "mobile equipment" is crucial in the insurance industry. "Autos" are typically defined as vehicles designed for travel on public roads, while "mobile equipment" refers to vehicles designed for use principally off public roads. This distinction can be confusing, especially when it comes to heavy equipment vehicles. To clarify, any vehicles with permanently attached cranes, diggers, drills, or loaders are considered "mobile equipment". Additionally, vehicles that provide mobility to road construction or resurfacing equipment, such as steam rollers and graders, also fall under this category.

The Insurance Services Office, Inc. (ISO) has made efforts to clarify the definitions of "auto" and "mobile equipment" in their commercial general liability (CGL) coverage form. According to ISO, even if a vehicle meets the definition of "mobile equipment", it will be considered an "auto" if it is subject to compulsory or financial responsibility laws in the state where it is licensed or garaged. This change has significant implications for insurance coverage, as liability coverage for "autos" and "mobile equipment" may differ.

Businesses often require mobile equipment endorsement to ensure their off-road machinery is covered in case of accidents. This endorsement provides peace of mind and financial protection for businesses operating heavy equipment that may occasionally need to be driven on public roads. It is worth noting that general liability insurance typically covers off-road use of mobile equipment, but not incidents that occur while driving to a job site on public roads.

In summary, mobile equipment endorsement is a valuable addition to a business auto policy, providing coverage for non-auto mobile equipment and ensuring that businesses are protected in the event of accidents involving their heavy machinery.

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