Which statement is true regarding BAP elevator maintenance as an insured contract?

Which statement is true regarding BAP elevator maintenance as an insured contract?

• A. Elevator maintenance is not applicable
• B. Elevator maintenance is applicable
• C. Elevator maintenance is optional
• D. Elevator maintenance is mandatory in all policies

Answer: (A)

The key idea here is how the insured contract provision works in a Business Auto Policy (BAP). In BAP, coverage for an insured contract is limited to contracts that relate to the insured’s use or liability arising from the operation of motor vehicles or other auto-related exposures. Elevator maintenance, however, is a premises/equipment service exposure rather than an auto exposure. Because of that, it’s not covered under the BAP’s insured contract provisions. If you needed protection for a contract where you assumed liability for a contractor’s elevator maintenance, that would typically be addressed under another policy form (such as a CGL) or with a specific endorsement, not by the BAP’s insured contract coverage. So elevator maintenance isn’t applicable to BAP insured contracts.

The key idea here is how the insured contract provision works in a Business Auto Policy (BAP). In BAP, coverage for an insured contract is limited to contracts that relate to the insured’s use or liability arising from the operation of motor vehicles or other auto-related exposures. Elevator maintenance, however, is a premises/equipment service exposure rather than an auto exposure. Because of that, it’s not covered under the BAP’s insured contract provisions. If you needed protection for a contract where you assumed liability for a contractor’s elevator maintenance, that would typically be addressed under another policy form (such as a CGL) or with a specific endorsement, not by the BAP’s insured contract coverage. So elevator maintenance isn’t applicable to BAP insured contracts.