What it does

For a covered auto that is a rolling store, CA 23 04 adds an exclusion to Covered Autos Liability: bodily injury or property damage resulting from the handling, use or condition of any item the insured makes, sells or distributes is not covered if it occurs after the insured has given up possession of the item.

Who needs it

Food trucks, ice cream trucks, canteen and catering trucks, mobile boutiques and other vehicles from which goods are sold. Rating manuals require it: the Massachusetts manual says a policy covering canteens, display rooms and autos used for selling products "must exclude product liability" using CA 23 04.

Selling notes

• Products liability for food or goods sold from the truck must be insured under a CGL (or a food-truck package). Without it, a customer illness claim falls in a gap.
• Stock and portable equipment carried in the truck are a property or inland marine exposure; review what the auto physical damage coverage will and will not pay for.