Personal Property in Transit Coverage

January 13, 2011

Our commercial property insured recently had a claim where a piece of ultrasound equipment was stolen from an employee's car. The form provides coverage for personal property in transit, but the carrier claims that it should be covered under the mobile equipment extention. There is no definition of “mobile equipment” in the policy, and the carrier is denying the claim since it was not listed on the schedule provided at renewal. The personal property in transit provision appears to provide coverage. The carrier states that it is not the intent of the policy extension to provide coverage for anything other than a shipment. It is our understanding that coverage includes, but is not limited to, transport by a hired carrier. The policy language is as follows: