Our insured is a valet company that operates out of a garage that it rents/leases from another party. The insured carries GKLL direct primary coverage and uses symbols 7, 8, and 9 for property damage coverage.

The insured reported a loss involving a customer's vehicle, in which the valet was bringing the vehicle back to the customer using an elevator that is owned by the company that owns the building but is operated by the insured. The valet in this case hit the gate on the elevator with the customer's vehicle, damaging both the vehicle and the elevator gate. The damage to the vehicle has been paid under the insured's GKLL coverage. The insured is now looking to make a claim for damage to the elevator gate under the property damage coverage. Would the insured's policy provide property damage coverage for this loss?

Colorado Subscriber

The BAP has a care, custody, or control exclusion that prevents coverage for damage to property in the insured's care, custody, or control. Since the insured is leasing the building, it has effective care, custody, and control of the building and especially of the elevator since the damage occurred at the time the insured was using it. The BAP is not going to cover this elevator damage claim.