An Employee Put Regular Gas Into a Diesel Truck, Damaging the Engine. Is This Covered Under the Commercial Auto Policy?
Question: “An employee put regular gas into a diesel truck, damaging the engine. Is this covered under the commercial auto policy?”
Answer: I’m gonna go out on a limb here and assume this isn’t hypothetical. If the policy includes the ISO Business Auto Coverage Form, CA 00 01 11 20, as amended by New York Changes In Business Auto And Motor Carrier Coverage Forms, CA 01 12 01 21, there should be coverage. However, a policy that does not include ISO forms may have different provisions, so it’s important to check the provisions of that policy. In any case, the insured should submit the claim to the carrier for their determination.
Under the ISO form, Comprehensive Coverage applies to a loss caused by anything other than collision or overturn unless an exclusion applies. The exclusions in the form are for:
- Nuclear hazard
- War or military action
- Using a covered auto in a professional or organized race, demolition or stunting activity
- Loss due and confined to mechanical or electrical breakdown, wear and tear, freezing, or damage to tires unless these result from a covered auto’s total theft
- Loss to electronic equipment unless permanently installed at the time of loss, CDs, fuzz-busters, and accessories
- Loss due to diminution of the auto’s value
None of these necessarily apply to putting unleaded regular in a diesel tank. Therefore, it appears that the ISO form would cover this loss.
Again, check the client’s policy to see if it differs from the ISO forms, and the carrier gets to make the ultimate determination of coverage.
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