Table of Contents
- The Role of Vehicle-Mounted Specialized Equipment in Commercial Contracting
- Key Considerations for Insuring Attached Machinery
- Action Steps
The Role of Vehicle-Mounted Specialized Equipment in Commercial Contracting
Many commercial contractors use specialized equipment mounted on their vehicles to perform a wide range of essential services. This equipment plays a critical role in tasks such as welding, spraying, drilling, or hoisting. For example, contractors in construction or industrial settings may equip their vehicles with welding units for on-site repairs or fabrication. Others use spray systems for painting or coating surfaces, while some use drilling rigs for boring holes into various materials. Hoisting equipment helps lift and position heavy objects or materials. Each type of equipment is tailored to the contractor’s trade, allowing them to efficiently and effectively deliver their services directly from their vehicles.
Key Considerations for Insuring Attached Machinery
When insuring attached machinery, it’s important to consider the factors listed below as they relate to the Commercial General Liability (CGL) policy and the Standard Ontario Auto Policy (OAP1):
- Overlapping coverages
- Defining which policy responds
- Simplifying the claims process
- Scheduling equipment
- The importance of the OPCF 30 (Removing Coverage for Attached Machinery)
Among other things, a CGL policy insures against bodily injury or property damage that may arise from the ownership and operation of machinery or equipment that is attached to a vehicle in use at a job site. As an example, a concrete contractor who inadvertently causes damage to a building while maneuvering the boom pump to pour a foundation.
However, while the machinery is not in use or is used solely for the purpose of loading or unloading, coverage should fall to the auto policy (OAP1).
Clarity in defining which policy responds in the event of a loss is critical to ensure there is no overlapping coverage between the CGL and the OAP1. This is accomplished by adding the OPCF 30. This endorsement simply removes coverage for loss or damage for liability or accident benefits caused while the equipment is in use, and it will include a list of the attached machinery to further clarify coverage to be directed to the CGL.
Clarity in defining which policy responds in the event of a loss is critical to ensure there is no overlapping coverage between the CGL and the OAP1. This is accomplished by adding the OPCF 30.
Since multiple policies could be involved, it is strongly recommended that both policies are written with the same carrier. This would lessen the potential for complications during the claims process. You may also want to consider scheduling attached machinery on a contractor’s equipment form, which could add benefits for the Insured such as Business Interruption and Replacement Cost coverage.
Action Steps
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