Unscheduled Trailer as Cause of Accident

December 11, 2012

We issued the Business Auto Coverage Form, CA 00 01 10 01, with Symbols 7, 8, and 9 for liability coverage. The scheduled covered autos include both tractors and semi-trailers owned by the policyholder and hence would be covered under symbol 7. The policyholder was involved in an accident while operating a scheduled tractor attached to an unscheduled, owned trailer. A wheel fell off the unscheduled trailer causing an accident. Normally, the liability coverage would flow through the power unit but here there appears to be no driver error. Would the fact the trailer is not a scheduled auto negate any liability coverage in this scenario?

Iowa Subscriber

At first glance, since the trailer is not covered under any of the covered auto designation symbols, it is not a covered auto and the BAP applies only to covered autos. However, check the “certain trailers” language. There is coverage for trailers with a load capacity of 2,000 pounds or less so if this trailer fits that description, the BAP will provide liability coverage in this instance.