Theft of cargo from a truck may not be covered under an automobile policy or under a CGL policy
An insurer ("ING") was successful in obtaining a declaration that it was not required to defend or indemnify a trucking company ("Schroeder Transport") under either an auto policy or a commercial policy with respect to claims relating to the theft of 26 snowmobiles from one of Schroeder Transport’s trucks.
Here is the citation: Big Freight Systems Inc. v. 421205 Alberta Ltd. (c.o.b. Schroeder Transport and Poul Nielskov Neilsen) [2007] A.J. No. 388. Alberta Court of Queen’s Bench. Veit J. April 3, 2007.
This case was originally digested by Jonathan Meadows and edited by David Pilley.
Here is a link to the decision.
Schroeder Transport was retained to deliver 27 snowmobiles by truck. The truck was stolen from a truck stop. Subsequently, the truck, trailer and one snowmobile were recovered. Schroeder Transport was sued with respect to this loss. At the time, Schroeder Transport held three separate policies of insurance: a cargo policy, a standard automobile policy and a commercial general liability ("CGL") policy. ING had issued the auto policy and the CGL policy. Schroeder Transport issued third party notices against its insurers.
ING brought on a motion asking the Court to order that the issue of coverage between Schroeder Transport and ING be determined before the trial of the main action and for a declaration that ING did not owe Schroeder Transport a duty to defend or indemnify under either the auto policy or the CGL policy. The Court reviewed the terms of the policies at issue and noted that the cargo policy obtained by Schroeder Transport was clearly designed to deal with the sort of loss at issue in the lawsuit. The Court held that the auto policy excluded this loss, as the snowmobiles were carried upon a trailer. The CGL policy excluded the loss, as it contained an exclusion for personal property that was in the care, custody and control of the insured.
In the result, the third party actions against ING for coverage were dismissed.
