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Borrowed equipment

Crane What contractor doesn’t let someone else use a piece of machinery every now and then? 

Big Diesel Construction Company loaned its mobile crane to Bill, an independent contractor.  While Bill was driving the crane from a job site of Big Diesel Construction, he ran a stop light and struck a car, injuring its occupants.

Could It Get Worse?
The crane then swerved off the road and sliced and diced a few power lines and phone lines, which shut down the operation of a nearby telecommunications firm for a day.

What Kind Of Claim Would This Turn Out To Be?

  • Injured occupants of the car made claim against Bill for the obvious physical auto damage, medical expense, loss of personal income, and the ever most frequent pain and suffering.
  • Business income claim made by the telecommunications firm for an entire day.
  • Who needs to pay for the crane?  A claim will be brought against Bill for the damages to the crane by Big Diesel Construction.

This sounds like one big mess!

To make matters worse, Bill’s insurance had lapsed and was not in force during the time of the accident.

You Won’t Believe It
Bill is an insured under Big Diesel Construction’s policy because he was driving on a public road with Big Diesel Construction’s permission.  Big Diesel Construction’s policy will pay for the damages to the car and its occupants and the claim made by the telecommunications firm.

What It Won’t Cover
The crane!  The commercial general liability policy excludes damage to property owned by the named insured.

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