Who is an insured?
A. the named insured is an insured for any covered auto
B. Anyone else using a covered auto the named insured owns, hires or borrows with the named insured’s permission – with some exceptions.
The following persons are NOT insureds:
1. When the named insured borrows a covered auto, the party the auto was hired or borrowed from, is not an insured,
2. The named insured’s employees or agents are not insureds if the employees, agents or members of their households own the auto,
3. A repair person is not an insured when the auto is being repaired if that repairperson is in the business of selling, servicing, repairing, parking, or storing autos. The repair person IS insured if the named insured owns the business.
4. Anyone moving property to or from a covered auto (is not an insured) EXCEPT employees, partners of a partnership, members of a LLC, a lessee or borrower of the covered auto, or their employees.
5. The named insured’s partners or members are not insureds for private passenger autos when those autos are owned by the partner, member, or someone in their household.
C. Owners or others the named insured hires or borrows trailers from are insureds while they are attached to the covered power unit OR if not connected, they are insureds when the trailers are used exclusively in the named insured’s business.
D. Any party leasing a non-trailer covered auto to the named insured is an insured if ALL of the following apply:
– there is a written agreement,
– the written agreement does not require the lessor to hold the insured harmless
– the leased auto is used in the named insureds carrier for hire business
*Employees, agents, or drivers of the lessor are insured if the party leasing the auto to the named insured is considered an insured.
E. Parties liable for the conduct of any insured described above are also insureds to the extent of their liability.
However, the following are NOT insureds:
1. (Does not apply if the written agreement of lease holds the carrier harmless) Other than the named insured and its employees, any carrier for hire and its agents or employees that is:
(A) subject to motor carrier insurance requirements and does not use auto liability to meet them,
(B) not covered for primary hired autos liability that insures the parties that own the autos and their employees and agents while the hired autos are used exclusively in the motor carrier’s business
2. When a trailer is detached from a covered auto and is being transported, rail, rater, or air carriers are not insureds. This applies only when the covered auto is being loaded, unloaded, or transported by the carrier.
In the next post on this issue, we address the question:
“Could an indemnification provision in a lease affect coverage?”
As always, I welcome your thoughts on any of the blog posts. If you need any assistance on trucking or other legal issues, please review the firm’s website at https://perkinsfirm.com/ to see how to contact us.