"Our insured is a land surveyor. While out on a project, someone stole his surveying equipment. The insurance company is denying the claim for 'property at premises operated by the insured' on the ISO CP 00 10 10 12. While he is doing several surveying jobs at various location each day, is each job considered a premises from which he operates? Some job sites are handled in 15 minutes or less."

Just being present on a premises does not constitute "operation" of that premises. “Operation” implies some kind of premises control beyond mere presence. Look at the exclusionary language in its entirety:

d. Property Off-premises
 (1) You may extend the insurance provided by this Coverage Form to apply to your Covered Property while it is away from the described premises, if it is:
 (a) Temporarily at a location you do not own, lease or operate;
 (b) In storage at a location you lease, provided the lease was executed after the beginning of the current policy term; or
 (c) At any fair, trade show or exhibition.
 (2) This Extension does not apply to property:
 (a) In or on a vehicle; or
 (b) In the care, custody or control of your salespersons, unless the property is in such care, custody or control at a fair, trade show or exhibition.
 (3) The most we will pay for loss or damage under this Extension is $10,000.

The exclusion applies to locations the insured "owns, leases or operates." All of the terms in this series must be examined collectively to determine the intent of the exclusionary language. Here is one of several legal principles that applies to contract analysis when you come across a series of terms like this:

Noscitur a sociis – "If the contract provision enumerates specific items, a person or thing will fall within the list if the person or thing is associated with the items on the list."

(You can search the VU for this term and the term ejusdem generis to find several claim denials we’ve gotten reversed. Few adjusters understand this basic legal contractual analysis principle.)

“Operation” requires a level of control comparable to ownership and leasing. Just being on a premises to perform work does not approach the level of ownership, leasing, or operating a facility.

As many courts have opined, the purpose of insurance is to insure, not to look for untenable premises to deny clearly covered claims. Cut the check.

Last Updated: March 11, 2024

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