August 31, 2015

Our insured has a garage policy that includes garagekeepers primary coverage. The insured operates an auto repair garage, and a fire occurred causing damage to two customers' autos and two Amish buggies that the insured was servicing.

Question 1: Does the Amish buggy qualify as a covered auto under symbol 30? Can a buggy qualify as a trailer as it is without power and is pulled by some other means?

Question 2: The customer of one of the autos had business tools damaged by the fire. Are the business tools covered as a part of the covered autos?

Ohio Subscriber

The buggy is not a covered auto since it does not meet the definition of a “land motor vehicle”—no motor. As for it being a trailer, the policy does not adequately define “trailer,” but the dictionary says a “trailer” is a nonautomotive vehicle designed to be hauled. A very liberal interpretation of a buggy is a nonautomotive vehicle designed to be hauled by a horse, so interpreting the unclear policy language as favorably to the insured as is reasonable, it is possible that a court might rule in favor of coverage. We are of the opinion that such a ruling would be incorrect, but a court ruling is a court ruling.

The GKLL coverage is for the customer's auto equipment. Unless the tools were auto equipment, there is no coverage for them under the GKLL insuring agreement. So, you have to find out exactly what kind of tools were in the car to be sure.