Automobile Exclusion Law and Legal Definition
Automobile exclusion refers to a provision in commercial general liability policies that excludes coverage for damages arising from the use of an automobile, aircraft, or other motor vehicle owned, operated, rented, or borrowed by the insured. Generally, automobile exclusion is a comprehensive policy and does not cover indemnification obligations pursuant to insured contract clauses where the underlying action arises from the use of an automobile.
In Brice Bldg. Co. v. Clarendon Am. Ins. Co., 2010 U.S. App. LEXIS 9333, 3-4 (11th Cir. Fla. May 6, 2010), the court held that automobile exclusion precluded coverage for injuries arising out of the ownership, maintenance, use or entrustment to others of any 'auto' owned or operated by any insured. According to the court, the exclusion further applied where loss occurred as a result of a collision where a car swerved off a roadway and struck the insured's van, which was parked on the side of the road while the insured's employees maintained the area.