A concrete foundation is crumbling due to a truck's sugar-contaminated sand delivery. Now, a court case hinges on whether the CGL auto exclusion applies: Did the damage occur in the truck or on the job site?
Notable Timestamps
[ 00:30 ] - At the outset, it seems the question (of whether the CGL or the BAC policy applies) turns on whether the damage occurred on the job site, at the concrete plant, or on the sand delivery truck.
[ 05:01 ] - Sugar can be used in small, controlled amounts to delay concrete setting time, but higher concentrations can prevent proper curing. The contamination in this scenario was due to a "failure to clean" the truck from a previous job.
[ 08:57 ] - The CGL Auto Exclusion operates to ensure coverage falls under the proper policy. In this case, the property damage occurred on a truck, so it should not be handled by the CGL policy but by Business Auto Coverage.
[ 13:02 ] - The CGL form defines property damage to include "loss of use", meaning that even if the sand itself wasn't physically damaged, its inability to be used for its intended purpose (making proper concrete) qualifies as property damage.
[ 15:47 ] - The Business Auto policy "Care, Custody, and Control" exclusion applied because the concrete plant's employee made the error.
[ 16:24 ] - Brennan provides a recap of the scenario and the points above.
Your PLRB Resources
In Brief: Clear Blue Specialty Ins. Co. v. Landrieu Concrete and Cement Industries, LLC, 2025 U.S. App. LEXIS 10563 (5th Cir. La. 5/1/25).
https://www.plrb.org/documents/clear-blue-specialty-ins-co-v-landrieu-concrete-and-cement-industries-llc-2025/
Annotation: CGL Policy Key GL39 – Automobile Exclusion.
https://www.plrb.org/documents/gl39-automobile-exclusion
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The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.
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