Property Damage Caused by Mobile Equipment Covered by CGL Form

Our insured, a community school district, sponsors the annual Homecoming Parade. On the way back to the school, the Jr. Class float was in an accident. The float was being pulled by a tractor operated by a student. At a stop sign, the tractor and float rolled back slightly as it began to enter the intersection. A convertible that was also in the parade (driven by a teacher, carrying the cheerleaders) was behind the float and got damaged when the float backed into it. Note that neither the auto nor equipment involved is owned by the insured. Adjuster claims the school's policy would be secondary based on the Other Insurance clause…the tractor owner should pay the damages or let the auto owner's carrier pay under collision. I would argue the tractor operator is an insured under the school's policy as a volunteer and is responsible for the operation of the tractor on behalf of the school. The school should be primary as there is no other insurance available to the insured (school).

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