An employee at the insured business negligently collided with a customer's vehicle while it was in the care, custody and control of the insured. (Photo: Digiphoto/iStockphoto)
Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts.
Editor's Note: What happens when your car is damaged while at an auto body shop for repairs? Is it your policy that pays for the damage or the body shop's coverage? We explore that situation in this week's Q&A.
Question: Our insured is an auto body shop. While having the care, custody and control of a client's car, which was undergoing repairs, an employee collided the car with a wall through carelessness and negligence.
The body shop has a commercial auto policy (CA 00 01), which also has the garagekeepers coverage endorsement. The insured did not choose direct primary nor direct excess coverage.
The customer is insured with a personal auto policy (PAP).
We have a few questions regarding insurance coverage for the incident involving the customer's vehicle:
- Does the 'other insurance condition under the CA 00 01 policy apply to this situation?
- Will the garagekeepers endorsement only cover on an excess basis over the customer's PAP policy even though the body shop was at fault? (The 'other insurance' clause in the business auto policy states that the insurance company will pay on an excess basis for non-owned autos.)
- Can the insurance company from the PAP policy retain their subrogation right against the body shop?
- Will the garagekeepers endorsement cover and pay this subrogation even when the policy is in excess?
— Puerto Rico Subscriber
Answer: To learn the answer to this week's coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.
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