Care, Custody, or Control Exclusion and Borrowed Vehicle

Our insured borrowed a bobcat to remove snow from his parking lot. He ran the bobcat for nine hours and then the engine broke down. The bobcat was very old and the repair cost is more than the value of the bobcat. The problem is that that owner of the bobcat did not have it insured. Would the general liability policy of our insured pay for the damage?

Missouri Subscriber

The insured would have to be liable for the damage in order for the general liability policy to respond to a claim. Based on what you say, it may very well be that the bobcat simply broke down due to age, a mechanical breakdown not caused by the insured in any way. If so, the liability policy would not pay for the loss.

However, if the insured is somehow held liable for the damage, the care, custody, or control exclusion on the CGL form would prevent coverage in this instance. The bobcat was personal property in the care and custody of the insured at the time of loss, and the exclusion is meant to prevent property damage coverage for such an event. It makes no difference that the property was not owned by the insured.