Interpreting “Ownership” or “Use” under the BOP

May 13, 2014

Insured is a tenant restaurant. Named insured parked his Vespa Moped on the sidewalk in front of his restaurant and went inside. While parked, the claimant tripped and fell over the Vespa and is now making a claim alleging insured did not warn her of the hazard and should not have parked it on the sidewalk. Insured submitted the claim under their BOP policy. Would the auto exclusion apply? Exclusion reads “BI or PD arising out of the ownership, maintenance, use or entrustment to others of any auto…” Does tripping over the Vespa constitute “arising out of its ownership or use?”

 

Ohio Subscriber

Yes, the auto exclusion is applicable here to preclude coverage for BI or PD.

 

Claimant tripped over insured's Vespa moped, which was parked on, or on the ways next to, the restaurant premises owned by insured and covered under insured's BOP. The damage arose from insured's ownership of the auto. Auto is defined in the policy as “a land or motor vehicle, trailer or semitrailer designed for travel on public roads….” As most mopeds must be licensed, it is clear that these vehicles are designed and intended for use on public roads and thus are considered “autos” for purposes of the BOP.

 

While there is an exception to the auto exclusion, it does not apply since the insured owned the moped. Thus, this claim is not covered under the BOP.