A brewery owner had bollards installed outside the building for safety purposes. One day a teenager veered off the road into one of the bollards, damaging it and the car. The adjuster is wondering if there should be no coverage on the basis that a bollard is a fence.
Notable Timestamps
[ 00:26 ] - The building owner submits the claim to their property insurer, looking for coverage for a new bollard. They have a standard CP 00 10 10 12, which does not include coverage for fences if the cause of loss was an accidental vehicle crash.
[ 01:34 ] - Trivia time! What is a "pub" short for? How many Clydesdales are hitched to the Budweiser wagon? Lite beer was introduced into the U.S. in what decade?
[ 04:15 ] - A bollard is a short pole or stump placed to prevent vehicle access without preventing pedestrian access. These may be seen at the entrances to bike paths, or out in front of buildings or arenas.
[ 05:40 ] - Under the CP form, a bollard would initially fit under building coverage as an external fixture. Fences are excluded except for certain types of losses (not including this kind of loss).
[ 07:30 ] - A line of bollards, like a fence, is something like a barrier that marks a boundary. But, there is no continuity between posts, and it does not prevent pedestrian access.
[ 09:11 ] - A historic moment: the team agrees on something!
[ 09:37 ] - Courts typically do not construe ambiguous exclusions broadly. "If it's gray, you must pay."
[ 10:40 ] - Declarations Pages are typically more detailed in CP forms, and often include small structures. However, at least one court chose not to penalize an insured for failing to list a series of (light) posts.
[ 12:26 ] - If a Declarations Page lists most structures specifically but omits some, that may create an issue for the insured.
[ 13:25 ] - Strong subrogration potential exists here against the driver.
[ 14:30 ] - A cement block wall was considered a fence... at least according to a 1959 case, and under a grant of coverage which is typically construed more broadly.
[ 16:40 ] - Tim provides a recap of the scenario and the points above.
Your PLRB Resources
Bollards: Do They Qualify As Fences? – PCQ.2017.05.09.twh.a - https://www.plrb.org/documents/bollards-do-they-qualify-as-fences-pcq-2017-05-09-twh-a/
Annotation: Property Outside Buildings (CP622) - https://www.plrb.org/documents/property-outside-buildings-cp622/
Chippewa Country Valley Festival v. Little Black Mut Ins Co (2002) - https://www.plrb.org/documents/chippewa-country-valley-festival-v-little-black-mut-ins-co-2002/
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