SYMBOL 19 – MOBILE EQUIPMENT SUBJECT TO MOTOR VEHICLE LAWS

Symbol 19 Mobile Equipment Subject to Motor Vehicle Laws - A Clause for Commercial Auto Policie

In plain language: Symbol 19 applies to business vehicles that don't typically operate on public roads but can sometimes do, and therefore, come under motor vehicle laws. It can include things like cranes, air compressors, farm machinery, and street cleaning equipment. 

Technical definition: In the context of a commercial auto insurance policy, Symbol 19 refers to certain mobile equipment that qualifies as an auto because it may be subject to motor vehicle registration, financial responsibility, compulsory insurance, or other motor vehicle insurance laws. 

Ever had a client argue over whether their crane—which can move on highways—is 'mobile equipment' or an 'auto'? Symbol 19 in the covered auto designation symbols comes into play here. 

TL;DR

Symbol 19 is for mobile equipment that can also fall under motor vehicle laws. 

It differentiates between equipment covered under a business auto policy and commercial general liability policy. 

A common pitfall is assuming that all mobile equipment is covered under the CGL policy. 

A quick win is ensuring the right insurance based on the utilization of the equipment. 

What Is Symbol 19 Mobile Equipment Subject to Motor Vehicle Laws in Insurance?

In the realm of commercial auto symbols, Symbol 19 is used to denote a category of vehicles that are typically considered mobile equipment but can be subject to motor vehicle laws under certain situations. This can include equipment designed for off-road use, like steam rollers, road graders, road scrapers, and even farm machinery. 

For instance, think of a crane used to raise or lower workers on a construction site. Most times, it's stationary, qualifying as 'mobile equipment' under the commercial general liability (CGL) policy. But if it moves on public highways, even infrequently, it might be subject to motor vehicle laws necessitating coverage typically provided by a business auto policy. 

Mobile equipment is generally not designed primarily for road use, hence not regularly subjected to motor vehicle laws. However, some equipment, such as street cleaning equipment with crawler treads or well servicing equipment, may need to interact with public highways. In such cases, your client may need more than just a CGL policy—they need either business auto insurance or trucking insurance coverage, addressed by Symbol 19. 

Key Related Terms to Know

Business Auto Coverage Form – A policy form that lays out coverages for bodily injury liability, property damage liability, physical damage, and uninsured motorist coverage for business-related autos. 

Mobile Equipment Definition – Equipment such as air compressors, spraying equipment, or scissor lifts, which aren't designed for public roads but may sometimes operate there. 

Motor Carrier Coverage Form – A policy coverage form for businesses in the business of transporting goods, including trailer interchange and equipment interchange agreement. 

Commercial General Liability (CGL) Policy – A policy providing coverage for bodily injury, property damage, and personal and advertising injury liability. It typically covers mobile equipment but has an auto exclusion for vehicles subject to motor vehicle laws. 

Common Questions About Symbol 19

What is mobile equipment subject to motor vehicle laws? 

Mobile equipment subject to motor vehicle laws is equipment that's typically not designed for road use but can operate on public roads. When doing so, it may become subject to motor vehicle registration and insurance laws, requiring coverage under a commercial auto policy. 

What's the difference between commercial auto insurance and commercial general liability policies for mobile equipment? 

Commercial auto insurance provides coverage when mobile equipment falls under motor vehicle laws, which is when the equipment is being used on public roads. In contrast, commercial general liability policies cover risks associated with the operation of equipment on private property, reflecting the CGL auto exclusion. 

Why is symbol 19 significant? 

Symbol 19 is important because it differentiates coverage for mobile equipment under CGL and auto policies. Failing to understand when a piece of equipment may need specific auto insurance (like Symbol 19), could leave a client unprotected in certain circumstances. 

What types of mobile equipment fall under Symbol 19? 

Types of equipment that fall into this category can include farm machinery, cranes, road graders, steam rollers, air compressors, well-servicing equipment, and certain types of construction, repair or maintenance equipment. 

Symbol 19 vs. Symbol 7 (Specifically Described Autos)

Symbol 19 and Symbol 7 both deal with commercial vehicle coverage, but they serve different purposes.  

Real Claim Examples Involving Symbol 19

Scenario 1: A landscaping business owns several pieces of equipment, including lawnmowers and tractors. One day, an employee driving a tractor on a public highway caused an accident. The business owner assumed their CGL policy would cover the damages, but because the accident occurred while operating on a public road, the tractor was considered an auto. Had they recognized this potential and secured Symbol 19 coverage, they would have been protected. 

Scenario 2: A construction company used a crane on a public road to transport it between two sites. Unfortunately, the crane collided with a powerline causing extensive blackout and damage to the crane. Because the company's insurance policy included Symbol 19, the damages were covered. 

Scenario 3: An air conditioning business has several trucks fitted with attached machinery. One day, while driving to a job, one of their trucks was involved in an accident. Insurance coverage was questioned because the truck was for transportation of persons and had permanently attached equipment. Luckily, the business had taken cover with Symbol 19, providing much-needed coverage. 

Limitations and Common Mistakes

Assuming all mobile equipment is automatically covered under a CGL policy. 

Failing to recognize that some types of mobile equipment can come under motor vehicle laws. 

Not understanding the specific uses of various coverage symbols like Symbol 19, especially in comparison to others like Symbol 7. 

Neglecting to update insurance coverages when adding more mobile equipment that can come under motor vehicle laws. 

How to Explain Symbol 19 to Clients

Construction Company Owner "Think of symbol 19 as a safety net for your cranes or other equipment that may sometimes operate on public roads. It ensures that, even when travelling between sites on public roads, your equipment has the appropriate cover." 

Small Business Landscaper "While your mowers and cutters are mostly used in private properties, occasionally, they may find themselves on public roads. Symbol 19 provides coverage here, given they'd be viewed as autos during this time." 

Owner of a Plumbing Business "Your vans fitted with equipment, though primarily for transportation of persons, may sometimes operate as more than that with equipment uses. We recommend symbol 19 coverage, ensuring you're protected no matter the situation."