Summary: Section II of the Business Auto Coverage Form, CA 00 01 11 20, contains the provisions relating directly and exclusively to auto liability coverage. These provisions include the insuring agreement, limit of insurance, supplementary payments, exclusions, persons insured, and out-of-state extensions. The following article discusses the liability provisions that appear on the current business auto coverage form. It is noted that the 11 20 edition of the form contains only one change affecting liability coverage from the previous 10 13 edition of the form, which is the addition of the Unmanned Aircraft exclusion, discussed in the Exclusions section.
Insuring Agreement
We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance, or use of a covered "auto".
We will also pay all sums an "insured" legally must pay as a "covered pollution cost or expense" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance, or use of covered "autos". However, we will only pay for the "covered pollution cost or expense" if there is either "bodily injury" or "property damage" to which this insurance applies that is caused by the same "accident".
We have the right and duty to defend any "insured" against a "suit" asking for such damages or a "covered pollution cost or expense". However, we have no duty to defend any "insured" against a "suit" seeking damages for "bodily injury" or "property damage" or a "covered pollution cost or expense" to which this insurance does not apply. We may investigate and settle any claim or "suit" as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insurance has been exhausted by payment of judgments or settlements.
Analysis:
The business auto coverage form (BAP) ties liability coverage to an "accident", a term defined on the form. General liability coverage forms have used "occurrence" as the triggering event, but the BAP has no need to use such an omnibus term. The use of "accident" adequately conveys the purpose of the auto liability coverage to apply to unforeseen, unplanned, and unexpected events pertaining to the use, maintenance, or ownership of autos.
Another part of the insuring agreement is coverage for "covered pollution cost or expense", a term that is defined in the auto form and that puts some limits on the coverage found under this agreement. For more information on this term, see Business Auto Definitions. However, it is important to note here that the insurer will only pay for the covered pollution costs if there is either bodily injury or property damage that is caused by the same accident that causes the covered pollution cost or expense.
The insurer has the right and duty to defend any insured against a suit asking for the types of damages specified above. There is no intention on the part of the insurer "to defend any insured against a suit seeking damages for bodily injury or property damage to which the insurance does not apply". As a general rule, however, the duty to defend is said to be broader than the duty to pay damages. If the allegations of a complaint against the insured are potentially within coverage, even if they may be false or fraudulent, the insurer is ordinarily obliged to defend. If a complaint against the insured contains numerous allegations, some potentially within policy coverage and others that are not, the insurer will still usually be required to defend. In addition to expressing its right and duty to defend, the insurer also reserves the right to investigate and settle any claim or suit as it considers appropriate; the insurer's duty to defend or settle ends when the liability coverage limit of insurance has been exhausted by payment of judgments or settlements.
The promises to pay damages and to defend any claim or suit asking for those damages are separate and independent promises. The insurer has a duty to indemnify and a duty to defend an insured. That is why defense costs are considered to be in addition to the limit of liability. For example, if the policy has a limit of liability of $300,000, this full amount is available for indemnification; an attorney's fee of $10,000 plus court costs of $2,000 will not reduce the limit of liability by the $12,000 figure. However, the insurer's duty to settle or defend does end when the limit of liability has been exhausted by payment of judgments or settlements
Who Is an Insured
The following are "insureds":
1. You for any covered "auto";
2. Anyone else while using with your permission a covered "auto" you own, hire, or borrow except:
a. The owner or anyone else from whom you hire or borrow a covered "auto". This exception does not apply if the covered "auto" is a "trailer" connected to a covered "auto" you own.
b. Your "employee" if the covered "auto" is owned by that "employee" or a member of his or her household.
c. Someone using a covered "auto" while he or she is working in a business of selling, servicing, repairing, parking, or storing "autos" unless that business is yours.
d. Anyone other than your "employees", partners (if you are a partnership), members (if you are a limited liability company), or, a lessee or borrower or any of their "employees", while moving property to or from a covered "auto".
e. A partner (if you are a partnership), or a member (if you are a limited liability company) for a covered "auto" owned by him or her or a member of his or her household.
3. Anyone liable for the conduct of an "insured" described above but only to the extent of that liability.
Analysis:
The named insured is an insured for any covered auto, that is, any auto described on the declarations page as covered; regardless of the symbol used—1 (any auto), 2 (owned autos only), 7 (specifically described autos), 8 (hired autos only), or whatever—the auto must be listed as a covered auto or the auto form will not consider the named insured as an insured under his own policy.
The second part of the "Who Is An Insured" section starts off with a very universal term—"anyone"; however, that term is quickly brought back within definite boundaries. First, the user of the covered auto has to be one with the permission of the named insured. A thief who takes the named insured's car on a joyride is not a permittee and so, not an insured under the named insured's auto form if an accident occurs. Second, the covered auto being used by the permittee must be one either owned, hired, or borrowed by the named insured. Nonowned autos, as described under the covered autos section of the auto policy, are not owned, not hired, and not borrowed; therefore, a driver using a nonowned auto, even on the business of the named insured, is not considered an insured under the named insured's BAP. Third, this part goes on to list some exceptions to the "insured" status and these should be noted.
One of the exceptions applies to any person using a covered auto while working in a business of selling, servicing, repairing, parking, or storing autos. But, the exception is stated not to apply to use in an auto business of the named insured's. For example, the auto form will not cover a car mechanic while road testing the named insured's car, or a parking lot attendant while parking the named insured's car, assuming neither of these persons is working in the named insured's business. However, if the mechanic or attendant is an employee of the named insured—perhaps the named insured's business has an incidental repair or parking operation—then the mechanic's or attendant's use of a covered auto in that auto business will be covered under the named insured's policy.
Coverage Extensions
Supplementary Payments
We will pay for the "insured":
1. All expenses we incur.
2. Up to $2000 for cost of bail bonds (including bonds for related traffic law violations) required because of an "accident" we cover. We do not have to furnish these bonds.
3. The cost of bonds to release attachments in any "suit" against the "insured" we defend, but only for bond amounts within our Limit of Insurance.
4. All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $250 a day because of time off from work.
5. All court costs taxed against the "insured" in any "suit" against the "insured" we defend. However, these payments do not include attorneys' fees or attorneys' expenses taxed against the "insured".
6. All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "insured" we defend, but our duty to pay interest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance.
These payments will not reduce the Limit of Insurance.
Analysis:
These coverage extensions are supplementary payments in that they do not reduce the limit of insurance available to the insured for the payment of a claim or lawsuit. The supplementary payments are rather self-explanatory and non-controversial. Note the repetitive use of the phrase "against the insured" when it comes to lawsuits. The insurer is making the point that these payments—like the defense duties—are for the insureds under the auto policy and not outside parties.
Out-of-State Coverage Extensions
While a covered "auto" is away from the state where it is licensed we will:
1.Increase the Limit of Insurance for Liability Coverage to meet the limits specified by a compulsory or financial responsibility law of the jurisdiction where the covered "auto" is being used. This extension does not apply to the limit or limits specified by any law governing motor carriers of passengers or property.
2.Provide the minimum amounts and types of other coverages, such as no-fault, required of out-of-state vehicles by the jurisdiction where the covered "auto" is being used.
We will not pay anyone more than once for the same elements of loss because of these extensions.
Analysis:
This provision of the auto coverage form's liability section is a two-part extension for accidents involving a covered auto that is outside the state in which it is licensed. The first part of the provision automatically increases the policy's liability limits to meet limits specified by either a compulsory or financial responsibility law in the jurisdiction where the covered auto is being used. If, for example, a covered auto is being driven in a Canadian province that requires a $200,000 limit, the insured's $100,000 limit is increased to $200,000 while the automobile is in that particular province. This extension does not apply to limits specified by any law governing carriers of passengers or property. In other words, the provision only extends to ordinary compulsory or financial responsibility laws and not to motor carrier laws.
The second part of the provision says that the insurer will provide the minimum amounts and types of coverages required of out-of-state vehicles by the jurisdiction where the covered auto is being used. For example, if the named insured is driving his or her covered auto in a state that requires no-fault coverage, this form will provide such required coverage to the named insured even if he or she does have that coverage on his or her auto form.
The last paragraph of this coverage extension section of the BAP is something of an anti-stacking device. It is an attempt by the insurer to make sure it does not pay more than once for a covered accident.
Exclusions
This insurance does not apply to any of the following:
1.Expected or Intended Injury
"Bodily injury" or "property damage" expected or intended from the standpoint of the "insured".
Analysis:
This exclusion should simply act as a reinforcement for the stipulation in the insuring agreement that damages for bodily injury or property damage must result from an auto accident, an unexpected or unforeseen event. Often, however, this "expected or intended" phrase is interpreted by courts as meaning that the exclusion does not apply unless the insured expects or intends the injury; in other words, even if the act is intended by the insured, the exclusion will not apply unless the insurer can show that the insured also intended the resultant injury.
2. Contractual
Liability assumed under any contract or agreement.
But this exclusion does not apply to liability for damages:
a. Assumed in a contract or agreement that is an "insured contract" provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement; or
b. That the "insured" would have in the absence of the contract or agreement.
Analysis:
This exclusion confirms that liability coverage under this insurance policy is not meant to apply to a breach of contract. The liability coverage here applies to damages assumed by the insured under agreements that fit the definition of "insured contract"; see Business Auto Definitions.
The second part of the exception to this exclusion makes a contractual agreement irrelevant when it comes to the liability coverage of the insured; the vital point is that the insured's own negligence causes the accident and the damage.
3. Workers Compensation
Any obligation for which the "insured" or the "insured's" insurer may be held liable under any workers compensation, disability benefits, or unemployment compensation law or similar law.
4. Employee Indemnification and Employer's Liability
"Bodily injury" to:
a.An employee of the "insured" arising out of and in the course of:
(1) Employment by the "insured"; or
(2) Performing the duties related to the conduct of the "insured's" business; or
b. The spouse, child, parent, brother, or sister of that "employee" as a consequence of paragraph a. above.
This exclusion applies:
(1) Whether the "insured" may be liable as an employer or in any other capacity; and
(2) To any obligation to share damages with or repay someone else who must pay damages because of the injury.
But this exclusion does not apply to "bodily injury" to domestic "employees" not entitled to workers compensation benefits or to liability assumed by the "insured" under an "insured contract". For the purposes of the Coverage Form, a domestic "employee" is a person engaged in household or domestic work performed principally in connection with a residence premises.
Analysis:
The purpose of these exclusions is to preclude business auto liability coverage for bodily injury to employees of the insured, an exposure that is more properly handled under workers compensation and employers liability insurance or other forms of employment related insurance. The clauses referring to the insured as being liable "as an employer or in any other capacity" and the obligation "to share damages with or repay someone else" are part of the exclusive remedy concept that is meant to draw a definite line between workers compensation coverage and business auto liability coverage.
The employers liability exclusion attempts to clarify what a domestic employee is so that if, for example, a maid drives the named insured's car on the business of the named insured and has an accident in which she is injured, coverage for bodily injuries will not be automatically excluded by the insurer simply because the maid is an employee of the named insured. As noted previously, the purpose of the exclusion is to preclude auto liability coverage for injuries to employees, injuries that should be handled under a workers comp policy. However, state workers comp laws do not necessarily mandate workers comp coverage for all domestic employees. In such an instance, if the injured domestic can not collect workers comp, he or she can seek payment for injuries through the named insured employer's auto policy. All other provisions of the policy apply, of course, but the domestic employee exception to the exclusion rules out any automatic rejection of the employee's claim.
5. Fellow Employee
"Bodily injury" to:
a. Any fellow "employee" of the "insured" arising out of and in the course of the fellow "employee's" employment or while performing duties related to the conduct of your business; or
b. The spouse, child, parent, brother or sister of that fellow "employee" as a consequence of Paragraph a. above.
Analysis:
This clause is meant to reinforce the idea behind the previous two exclusions—bodily injury to employees are to be covered under a workers compensation policy. The wording of this exclusion makes sure that even if the name insured-employer is someone who works out on the floor with his employees and is thus considered a "fellow employee" by his employees and by himself, this exclusion is going to apply. Also, if an employee is considered an insured under the provisions of the "who is an insured" clause, this exclusion affects any claim for damages by a fellow employee. The exclusion also refers to consequential injury claims in keeping with the employee indemnification and employer's liability exclusion.
6. Care, Custody, or Control
"Property damage" to or "covered pollution cost or expense" involving property owned or transported by the "insured" or in the "insured's" care, custody, or control. But this exclusion does not apply to liability assumed under a sidetrack agreement.
Analysis:
The wording of this particular exclusion should be noted for the use of the term "the insured" as opposed to "you" (the named insured) or "an insured". By using the term "the insured", the exclusion on the BAP applies to the particular insured transporting or controlling the property, but not to other insureds. If the term "you" were used, the exclusion could properly be said to apply only to the named insured. If the term "an insured" were used, the exclusion would apply to any insured deemed as such on the policy. This latter term, then, could be seen as an omnibus term, denying coverage to any and all insureds regardless of which insured or how many insureds have custody or control of the property at the time of loss.
7. Handling of Property
"Bodily injury" or "property damage" resulting from the handling of property:
a. Before it is moved from the place where it is accepted by the "insured" for movement into or onto the covered "auto"; or
b. After it is moved from the covered "auto" to the place where it is finally delivered by the "insured".
8. Movement of Property by Mechanical Device
"Bodily injury" or "property damage" resulting from the movement of property by a mechanical device (other than a hand truck) unless the device is attached to the covered "auto".
Analysis:
Although the words "loading and unloading" are not used in the business auto coverage form, these two exclusions define the scope of coverage for loading and unloading of covered autos, in terms of "handling of property" and "movement of property."
To illustrate exclusion 7, the insured has agreed to pick up a sofa at a department store warehouse and deliver it to a third-floor apartment. If the loading dock at the warehouse is the place where the sofa is accepted by the insured's employees, the insured's auto form will cover liability arising out of the employees' handling of the property from the time they pick it up at the loading dock until they deliver it to the customer's apartment. Say that after bringing the sofa as far as the apartment stairwell, the employees decide to go to lunch before moving the sofa the rest of the way to the customer's apartment. If leaving the sofa in a certain place creates an obstruction that causes injury for which the insured becomes liable, the auto form will apply to the claim, because at the time of the loss, the sofa would not have been finally delivered by the insured.
Exclusion 8 relating to loading and unloading eliminates coverage for bodily injury or property damage resulting from the movement of property by a mechanical device—other than a hand truck—not attached to the covered auto. For example, injury resulting from the use of an attached hoist on a flatbed truck to load or unload bricks from the truck is not subject to the exclusion, since the hoist is attached to the truck. However, the use of a conveyor belt not attached to the truck, even though being used to load or unload the truck, is excluded. The only exception to the exclusion, as noted previously, is the use of a hand truck. The use of a hand truck would be covered under the BAP, but of course, the use of a forklift would not be covered under the BAP.
It should be noted here that these exclusions have no effect on the care, custody, or control exclusion. If the insured damages property that he is transporting or loading into a truck for transporting, the liability for that property damage is not covered by the BAP. The care, custody, or control exclusion would apply to that incident.
9. Operations
"Bodily injury" or "property damage" arising out of the operation of:
a. Any equipment listed in paragraphs 6.b. and 6.c. of the definition of "mobile equipment"; or
b. Machinery or equipment that is on, attached to, or part of a land vehicle that would qualify under the definition of "mobile equipment" if it were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged.
Analysis:
The exclusion attempts to make clear that the operation of the described equipment itself is not covered under the auto form. The types of equipment to which the exclusion applies are cherry pickers and similar devices mounted on an auto or truck chassis and used to raise or lower workers; and air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting or well servicing equipment. Also, the equipment on or attached to land vehicles that are subject to state financial responsibility laws is included in this area. Those types of land vehicles are considered autos for coverage purposes, but the attached equipment is considered subject to general liability coverage.
To illustrate, the insured has a cherry picker mounted on a truck. The insured's auto form will cover the over-the-road hazard of driving the truck from one work site to another. If, however, while the cherry picker is being used at a work site the insured's employee drops a tool from the cherry picker and injures a passerby, the form is not intended to cover the resulting injury, which arose out of the operation of the equipment, not the vehicle. The CGL form complements the auto form by covering the equipment exposure and excluding the vehicular exposure.
10. Completed Operations
"Bodily injury" or "property damage" arising out of your work after that work has been completed or abandoned.
In this exclusion, your work means:
a. Work or operations performed by you or on your behalf; and
b. Materials, parts, or equipment furnished in connection with such work or operations.
Your work includes warranties or representations made at any time with respect to the fitness, quality, durability or performance of any of the items included in paragraphs a. or b. above.
Your work will be deemed completed at the earliest of the following times:
(1) When all of the work called for in your contract has been completed.
(2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site.
(3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project.
Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed.
Analysis:
The completed operations exclusion is for bodily injury or property damage arising out of the named insured's work after it has been completed or abandoned. Since completed operations liability insurance has never been considered to be a feature of liability insurance for the "ownership, maintenance, or use of an auto," the exclusion is probably best viewed as nothing more than a reinforcement or clarification of underwriting intent. The appropriate source of completed operations insurance is general liability insurance.
11. Pollution
"Bodily injury" or "property damage" arising out of the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of "pollutants":
a. That are or that are contained in any property that is:
(1) Being transported or towed by, handled, or handled for movement into, onto, or from the covered "auto";
(2) Otherwise in the course of transit by or on behalf of the "insured"; or
(3) Being stored, disposed of, treated, or processed in or upon the covered "auto";
b. Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are accepted by the "insured" for movement into or onto the covered "auto"; or
c. After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of, or abandoned by the "insured".
Paragraph a. above does not apply to fuels, lubricants, fluids, or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic, or mechanical functioning of the covered "auto" or its parts, if:
(1) The "pollutants" escape, seep, migrate, or are discharged, dispersed, or released directly from an "auto" part designed by its manufacturer to hold, store, receive, or dispose of such "pollutants"; and
(2) The "bodily injury", "property damage", or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in paragraphs 6.b. and 6.c. of the definition of "mobile equipment".
Paragraphs b. and c. above of this exclusion do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with respect to "pollutants" not in or upon a covered "auto" if;
(1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned, or damaged as a result of the maintenance or use of a covered "auto"; and
(2) The discharge, dispersal, seepage, migration, release, or escape of the "pollutants" is caused directly by such upset, overturn, or damage.
Analysis:
To summarize the pollution exclusion, it can be said to be an almost absolute elimination of coverage for pollution incidents, subject to very limited exceptions. Some illustrations may help to explain this particular exclusion.
If, for example, one of the named insured's trucks (not carrying pollutants) collides with a tank truck not operated by the named insured, causing the tank trucks' hazardous cargo to spill, any resulting bodily injury or property damage for which the insured becomes liable will not be reached by the exclusion. The same is true if a covered auto collides with a stationary storage tank containing pollutants or causes the derailment of a train carrying a hazardous cargo. The exclusion is aimed at discharge that originates from the covered auto itself. Note, however, that the exclusion does apply while pollutants are being handled for movement into, onto, or from the covered auto; the pollutants need to be in or on the covered auto in order to be excluded in such cases.
As another example, a truck's crankcase is ruptured in a collision with another vehicle in a busy intersection. The oil from the crankcase creates an oil slick next to the truck that results in another accident a moment later. If the insured truck owner is held liable for damage to the vehicle involved in the second accident, the pollution exclusion will not apply, since the oil was for the normal mechanical functioning of the auto and it escaped from an auto part designed to hold the oil for that purpose.
As a last example, the insured has "finally delivered" a hazardous cargo to his customer without incident. However, while attempting to drive off the customer's lot, the insured accidentally backs his truck into the delivered cargo, resulting in a chemical spill that injures an employee of the customer. Even though the cargo has been finally delivered, the pollution exclusion will not apply, because the pollutants were not in the covered auto and were upset as a results of the use of a covered auto.
Obviously, the narrow exceptions to the exclusion do not provide adequate pollution liability coverage for insureds that transport or otherwise handle property meeting the policy definition of "pollutants." Such insureds can buy back coverage for some of the excluded exposure through use of endorsement CA 99 48.
This endorsement states that paragraph a. of the pollution exclusion applies only to liability assumed under a contract or agreement. Therefore, if an insured transports pollutants and desires some insurance coverage should an accident occur, that insured can attain the coverage through the use of CA 99 48. The important points to remember are that the coverage will be at a price, some insurers may not be willing to provide such coverage, and the endorsement's coverage will not apply to liability that the insured has agreed to assume under a hold harmless contract or agreement. (Note that any such hold harmless agreement does not come into play where the cause of loss and liability rest solely with the insured.)
The current version of CA 99 48 also changes the definition of "covered pollution cost or expense". The endorsement deletes that part of the definition that deals with covered pollution costs or expenses not including any costs arising out of the discharge or release of pollutants transported by the insured. In effect, CA 99 48 working in tandem with the insuring agreement on covered pollution cost or expense, allows the insured to purchase coverage for incurred clean up costs. These are not just the clean up costs from cargo leakage. Therefore, if an insured causes an auto accident while transporting gasoline and damage occurs from the cargo leaking out, CA 99 48 will provide cleanup costs if a governmental authority demands or orders the insured to remove, contain, neutralize, or in any way respond to the gasoline spill.
It is fitting to note that the definition of pollutants is not found in the pollution exclusion; it is in the definitions section of the business auto coverage form. Pollutants are defined as any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed.
12. War
"Bodily injury" or "property damage" arising directly or indirectly out of:
a. War, including undeclared or civil war;
b. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or
c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these.
Analysis:
This is the war exclusion currently found on insurance forms. It reflects the revision made to the war exclusion following the terrorist attacks on the World Trade Center in 2001.
13. Racing
Covered "autos" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. This insurance also does not apply while that covered "auto" is being prepared for such a contest or activity.
Analysis:
The final exclusion deals with racing or stunting activities. The liability insurance under CA 00 01 does not apply to covered autos while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. The insurance does not apply even while that covered auto is being prepared for such a contest or activity. This exclusion tries to clarify that the business auto form is not meant to apply to such high risk exposures as auto racing, such exposures should, of course, be insured under a specialty policy.
14. Unmanned Aircraft
"Bodily injury" or "property damage" arising out of the ownership, maintenance or use of "unmanned aircraft".
Analysis:
With the advent of drones and their unique exposures given that they are typically operated without a human at the helm, from a reasonable standpoint these types of flying craft fall under the auspices of an aircraft as opposed to a vehicle type exposure. As such, there was a need to add the exclusion to remove any misconception that there would be coverage under auto liability for these unmanned craft.
A definition is added to describe an unmanned aircraft as one that is not designed, manufactured, or modified after manufacture; to be controlled directly by a person from within or on the aircraft.
So even should a drone be equipped with a human at the helm, it still will be excluded from coverage under the auto form.
Limit of Insurance
Regardless of the number of covered "autos", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or expense" combined, resulting from any one "accident" is the Limit of Insurance for Liability Coverage shown in the Declarations.
All "bodily injury", "property damage", and "covered pollution cost or expense" resulting from continuous or repeated exposure to substantially the same conditions will be considered as resulting from one "accident".
No one will be entitled to receive duplicate payments for the same elements of "loss" under this Coverage Form and any Medical Payments Coverage endorsement, Uninsured Motorists Coverage endorsement, or Underinsured Motorists Coverage endorsement attached to this Coverage Part.
Analysis:
This clause simply emphasizes the point that, regardless of the number of autos, premiums, or claims involved in an accident, what needs to be looked at is the limit of insurance that is stated on the declarations page. In any one accident, the stated limit of insurance is the most the insurer will pay.
For clarification purposes, the form also states that no one is entitled to receive duplicate payments for the same elements of loss under the coverage form and any medical payments coverage endorsement, uninsured motorists coverage endorsement, or underinsured motorists coverage endorsement. These latter coverages are separate in form and in intent from the coverage provided under the business auto form, and this paragraph is an attempt to make sure that insureds, attorneys, and judges understand.
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