Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Casualty InsuranceEasy
A Florida-based landscaping company uses several vehicles for its operations, including pickup trucks for transporting crew and equipment, and a specialized trailer-mounted stump grinder. While operating the stump grinder at a client's property, an employee accidentally damages the client's irrigation system. Under which section of the Personal Auto Policy (PAP) would coverage for this damage typically fall if the company had opted for a PAP instead of a Commercial Auto Policy?
- AMedical Payments Coverage
- BOther Than Collision (Comprehensive) Coverage
- CProperty Damage Liability
- DCollision Coverage
Show answer & explanationAnswer & explanation
Correct answer: C. Property Damage Liability
Property Damage Liability coverage in a Personal Auto Policy pays for damage to another person's property caused by the insured's vehicle. In this scenario, the damage to the irrigation system is damage to a client's property caused by the operation of the company's equipment, which would be covered under this section.
Why the other options are wrong
- A. Medical Payments Coverage is for bodily injury to the insured or passengers, not property damage.
- B. Other Than Collision (Comprehensive) Coverage pays for damage to the insured's own vehicle from non-collision events, not damage to others' property.
- D. Collision Coverage pays for damage to the insured's own vehicle from a collision, not damage to others' property.
PAP Property Damage Liability
Covers damage to another person's property caused by the insured's vehicle in an accident for which the insured is legally responsible.
- Covers third-party property damage.
- Does not cover damage to the insured's own vehicle.
- Is a mandatory coverage in many states.
Memory trick: PAP covers your car and what it harms.