Under the business auto coverage form, when is mobile equipment covered?

Under the business auto coverage form, when is mobile equipment covered?

• A. When being carried or towed by a covered auto.
• B. On an excess basis.
• C. When listed on the declarations.
• D. When coverage is written as Symbol 1.

Answer: (A)

Mobile equipment is covered under the business auto coverage form specifically when it is being carried or towed by a covered auto. This is important because mobile equipment, which refers to machinery or vehicles not usually designed for highway use, would not be eligible for coverage on its own unless it is associated with a covered automobile. This arrangement recognizes that while mobile equipment typically operates off-road, there are scenarios where it needs to be transported on public or private roads via a covered vehicle. Thus, the business auto policy extends coverage to protect against risks during that transport. Other options highlight different aspects of coverage but do not apply specifically to when mobile equipment is included under the business auto policy guidelines. For example, mobile equipment listed on the declarations would imply separate coverage conditions that do not inherently relate to its transportation by a covered auto. Additionally, excess coverage or specific symbols under the policy framing do not pertain directly to the context of mobile equipment being carried or towed.

Mobile equipment is covered under the business auto coverage form specifically when it is being carried or towed by a covered auto. This is important because mobile equipment, which refers to machinery or vehicles not usually designed for highway use, would not be eligible for coverage on its own unless it is associated with a covered automobile.

This arrangement recognizes that while mobile equipment typically operates off-road, there are scenarios where it needs to be transported on public or private roads via a covered vehicle. Thus, the business auto policy extends coverage to protect against risks during that transport.

Other options highlight different aspects of coverage but do not apply specifically to when mobile equipment is included under the business auto policy guidelines. For example, mobile equipment listed on the declarations would imply separate coverage conditions that do not inherently relate to its transportation by a covered auto. Additionally, excess coverage or specific symbols under the policy framing do not pertain directly to the context of mobile equipment being carried or towed.