Los Angeles Claims Adjuster Property and Causality Practice Exam

Which type of equipment is not covered under CGL when it is transported by an owned vehicle?

1. Mobile equipment used in construction

2. Mobile equipment rented by the insured

3. Personal tractors owned by the insured

4. All types of heavy-duty machinery

The correct answer is: Mobile equipment used in construction

The correct answer pertains to the exclusion that applies to mobile equipment under a Commercial General Liability (CGL) policy when it is transported by an owned vehicle. Specifically, the CGL policy generally does not cover mobile equipment used in construction while it is being transported or specifically when it is not being used for its intended purpose. This is because mobile equipment, such as construction machinery, is often designed for specific tasks on the job site, and the risks associated with transportation fall outside the primary coverage of a CGL policy. Though items like personal tractors or rented mobile equipment may have coverage under different provisions or policies, the key distinction here is that mobile equipment used in construction is specifically identified as a type of equipment that is not covered under the CGL when it is merely being transported. Therefore, this indicates a clear understanding of the policy coverage and its limits concerning equipment used in construction.