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October 13, 2016  

 Q&A of the Week
Care Custody or Control of Stolen Property from Hotel Parking Lot

Our insured operates a hotel. Two patrons had parked their motorcycles in the parking lot and had gone inside. The saddle bags were stolen off of their motorcycles, which contained their personal property. Insured does not have surveillance or security working in the parking lot. Would I be able to apply exclusion j(4) Damage to Personal Property in Your Care Custody or Control?

ANSWER: The care, custody, or control exclusion would not be applicable in this situation. The care, custody, or control exclusion excludes coverage for damage done while the property was in the care, custody, or control of the insured. Just because a vehicle is parked in the parking lot of the insured does not mean that it is in the care, custody, or control of the insured, as the vehicle driver still possesses the key and the title and responsibility of the vehicle. The insured may be liable for negligently allowing a robber on the premises of the hotel due to inadequate security (a lack of surveillance or security personnel as mentioned), which resulted in the theft. If a case is brought, the defense of the insured should be provided, and coverage for liability should apply if the insured is found to be negligent.
 Read More
 What's New This Week in FC&S
Overview of the Federal Automated Vehicles Policy

On September 20, 2016, the Department of Transportation announced the Federal Automated Vehicles Policy. Read More
 Litigation Watch
Additional Insured and a Certificate of Insurance

The insurer filed a declaratory judgment action seeking a declaration that it had no defense or indemnification duties in an underlying action involving its insured. This case is Arch Insurance Company v. Stone Mountain Access Systems, Inc., 2016 WL 3671466.

Arch issued a general liability policy to Walsh Group during which time, Walsh leased scaffolding equipment from Stone Mountain Access Systems. Hansen, an employee of Walsh, suffered injuries after scaffolding equipment collapsed during a construction job, and he filed a lawsuit against Stone. 
Read More
 Fraud of the Week
Staged Crashes – Pennsylvania
AMOUNT: $5 Million

A Pennsylvania man who is known to be a mob sidekick pulled off a staggering insurance con with two former Pennsylvania mob bosses. Read More
 FC&S Ask the Experts
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?

Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).

Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.

Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here.
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Kelly Maheu, J.D.
  Diane W. Richardson, CPCU
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Christine G. Barlow, CPCU
Managing Editor, FC&S
  Diana B. Reitz, CPCU, AAI
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