NAUTILUS INSURANCE COMPANY
COMMERCIAL INLAND MARINE
REPAIR AND SERVICE OPERATIONS LEGAL LIABILITY COVERAGE FORM
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.
Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance.
Other words and phrases that appear in quotation marks have special meaning. Refer to Section V - Definitions.
SECTION I - COVERAGES
REPAIR AND SERVICE OPERATIONS LEGAL LIABILITY
A. Insuring Agreement
1. We will pay all sums the "insured" legally must pay as damages for direct physical loss of or damage to a "customer's auto" or "customer's auto" equipment left in the "insured's" care while the "insured" is attending, servicing, repairing, parking or storing it in your "repair and service operations" under:
a. Specified Causes Of Loss Coverage
(1) Fire, lightning or explosion;
(2) Theft; or
(3) Mischief or vandalism.
b. Collision Coverage
(1) The "customer's auto's" collision with another object; or
(2) The "customer's auto's" overturn.
2. We have the right and duty to defend any "insured" against a "suit" asking for these damages. However, we have no duty to defend any "insured" against a "suit" seeking damages for any loss or damage to which this insurance does not apply. We may investigate and settle any claim or "suit" as we consider appropriate. Our duty to defend or settle ends for a coverage when the Limit of Insurance for that coverage has been exhausted by payment of judgments or settlements.
1. This insurance does not apply to any of the following:
a. Contractual Obligations
Liability resulting from any agreement by which the "insured" accepts responsibility for loss or damage.
Loss or damage due to theft or conversion caused in any way by you, your "employees" or by your shareholders.
c. Defective Parts
Defective parts or materials.
d. Faulty Work
Faulty "work you performed".
e. In Transit
Loss or damage to a "customer's auto" arising out of the ownership, maintenance or use of any "autos" in your "repair and service operations", such as tow trucks, car haulers or other service "autos" used to move, tow, haul or carry a "customer's auto". Use includes operation and "loading or unloading".
2. We will not pay for loss or damage to any of the following:
a. Tape decks or other sound reproducing equipment unless permanently installed in a "customer's auto".
b. Tapes, records or other sound reproducing devices designed for use with sound reproducing equipment.
c. Sound receiving equipment designed for use as a citizens' band radio, two-way mobile radio or telephone or scanning monitor receiver, including its antennas and other accessories, unless permanently installed in the dash or console opening normally used by the "customer's auto" manufacturer for the installation of a radio.
d. Any device designed or used to detect speed measuring equipment such as radar or laser detectors and any jamming apparatus intended to elude or disrupt speed measuring equipment.
e. Any electronic equipment, without regard to whether this equipment is permanently installed, that receives or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound.
f. Any accessories used with the electronic equipment described in Paragraph e. above.
C. COVERAGE EXTENSIONS
The following applies as Supplementary Payments. In addition to the Limit of Insurance, we will pay for the "insured":
a. All expenses we incur.
b. The cost of bonds to release attachments in any "suit" against the "insured" we defend, but only for bond amounts within our Limit of Insurance.
c. All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $250 a day because of time off from work.
d. All costs taxed against the "insured" in any "suit" against the "insured" we defend.
e. All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "insured" we defend; but our duty to pay interest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance.
SECTION II - WHO IS AN INSURED
The following are "insureds" for loss or damage to "customer's autos" and "customer's auto" equipment:
2. Your partners (if you are a partnership), members (if you are a limited liability company), "employees", directors or shareholders while acting within the scope of their duties as such.
SECTION III - LIMIT OF INSURANCE AND DEDUCTIBLE
A. Regardless of the number of "customer's autos", "insureds", premiums paid, claims made or "suits" brought, the most we will pay for each loss or damage at each location is the Repair and Service Operations Coverage Limit of Insurance shown in the Declarations for that location minus the applicable deductibles for loss or damage caused by Collision or Specified Causes of Loss.
B. The maximum deductible stated in the Declarations for Repair and Service Operations Legal Liability Specified Causes of Loss Coverage is the most that will be deducted for all loss or damage in any one event.
C. Sometimes to settle a claim or "suit", we may pay all or any part of the deductible. If this happens you must reimburse us for the deductible or that portion of the deductible that we paid.
SECTION IV - REPAIR AND SERVICE OPERATIONS LEGAL LIABILITY CONDITIONS
The following conditions apply in addition to the Common Policy Conditions:
A. Loss Conditions
If you and we disagree on the amount of loss or damage, either may demand an appraisal of the loss or damage. In this event, each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire.
The appraisers will state separately the actual cash value and amount of loss or damage. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
a. Pay its chosen appraiser; and
b. Bear the other expenses of the appraisal and umpire equally.
If we submit to an appraisal, we will still retain our right to deny the claim.
2. Duties In The Event Of "Accident", Claim, "Suit" Or Loss
We have no duty to provide coverage under this policy unless there has been full compliance with the following duties:
a. In the event of "accident", claim, "suit" or loss or damage, you must give us or our authorized representative prompt notice of the "accident", loss or damage. Include:
(1) How, when and where the "accident", loss or damage occurred;
(2) The "insured's" name and address; and
(3) To the extent possible, the names and addresses of any witnesses.
b. Additionally, you and any other involved "insured" must:
(1) Assume no obligation, make no payment or incur no expense without our consent, except at the "insured's" own cost.
(2) Immediately send us copies of any request, demand, order, notice, summons or legal paper received concerning the claim or "suit".
(3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit".
(4) Authorize us to obtain all pertinent information.
c. If there is loss or damage to a "customer's auto" or its equipment you must also do the following:
(1) Promptly notify the police if the "customer's auto" or any of its equipment is stolen.
(2) Take all reasonable steps to protect the "customer's auto" from further loss or damage. Also keep a record of your expenses for consideration in the settlement of the claim.
(3) Permit us to inspect the "customer's auto" and records proving the loss or damage before its repair or disposition.
(4) Agree to examinations under oath at our request and give us a signed statement of your answers.
3. Legal Action Against Us
No one may bring a legal action against us under this Coverage Form until:
a. There has been full compliance with all the terms of this Coverage Form; and
b. We agree in writing that the "insured" has an obligation to pay or until the amount of that obligation has finally been determined by judgment after trial. No one has the right under this policy to bring us into an action to determine the "insured's" liability.
4. Loss Payment
At our option we may:
a. Pay for, repair or replace damaged or stolen property;
b. Return the stolen property, at our expense. We will pay for any damage that results to the "customer's auto" from the theft; or
c. Take all or any part of the damaged or stolen property at an agreed or appraised value.
If we pay for the loss or damage, our payment will include the applicable sales tax for the damaged or stolen property.
5. Transfer Of Rights Of Recovery Against Others To Us
If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us. That person or organization must do everything necessary to secure our rights and must do nothing after "accident", loss or damage to impair them.
B. General Conditions
Bankruptcy or insolvency of the "insured" or the "insured's" estate will not relieve us of any obligations under this Coverage Form.
2. Concealment, Misrepresentation Or Fraud
This Coverage Form is void in any case of fraud by you at any time as it relates to this Coverage Form. It is also void if you or any other "insured", at any time, intentionally conceal or misrepresent a material fact concerning:
a. This Coverage Form;
b. The "customer's auto";
c. Your interest in the "customer's auto"; or
d. A claim under this Coverage Form.
If we revise this Coverage Form to provide more coverage without additional premium charge, your policy will automatically provide the additional coverage as of the day the revision is effective in your state.
4. No Benefit To Bailee
We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regardless of any other provision of this Coverage Form.
5. Other Insurance
a. The insurance provided by this Coverage Form is excess over any other collectible insurance.
b. When this Coverage Form and any other Coverage Form or policy covers on the same basis, we will pay only our share. Our share is the proportion that the Limit of Insurance of our Coverage Form bears to the total of the limits of all the Coverage Forms and policies covering on the same basis.
6. Policy Period, Coverage Territory
a. Under this Coverage Form, we cover losses or damages occurring during the policy period shown in the Declarations and within the coverage territory.
b. The coverage territory is:
(1) The United States of America;
(2) The territories and possessions of the United States of America;
(3) Puerto Rico; and
7. Two Or More Coverage Forms Or Policies Issued By Us
If this Coverage Form and any other Coverage Form or policy issued to you by us or any company affiliated with us apply to the same "accident", the aggregate maximum Limit of Insurance under all the Coverage Forms or policies shall not exceed the highest applicable Limit of Insurance under any one Coverage Form or policy. This condition does not apply to any Coverage Form or policy issued by us or an affiliated company specifically to apply as excess insurance over this Coverage Form.
SECTION V - DEFINITIONS
A. "Accident" includes continuous or repeated exposure to the same conditions.
B. "Auto" means a land motor vehicle, "trailer" or semitrailer.
C. "Customer's auto" means an "auto" on the premises for the purpose of receiving the services normally provided in connection with the business but does not include an "auto" owned by or rented or loaned to any "insured".
D. "Employee" includes a "leased worker". "Employee" does not include a "temporary worker".
E. "Repair and service operations" means the ownership, maintenance or use of locations for repair and service business and that portion of the roads or other accesses that adjoin these locations.
F. "Insured" means any person or organization qualifying as an insured in Section II - Who Is an Insured. Except with respect to the Limit of Insurance, the coverage afforded applies separately to each "insured" who is seeking coverage or against whom a claim or "suit" is brought.
G. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker".
H. "Loading or unloading" means the handling of a "customer's auto":
1. After it is moved from the place where it is accepted for movement into or onto an "auto";
2. While it is in or on an "auto"; or
3. While it is being moved from an "auto" to the place where it is finally delivered.
I. "Suit" means a civil proceeding in which damages, to which this insurance applies, are claimed. "Suit" includes:
1. An arbitration proceeding in which such damages are claimed and to which the "insured" must submit or does submit with our consent; or
2. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the "insured" submits with our consent.
J. "Temporary worker" means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short-term workload conditions.
K. "Trailer" includes semitrailer.
L. "Work you performed" includes:
1. Work that someone performed on your behalf; and
2. The providing of or failure to provide warnings or instructions.
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