What does exclusion h. under mobile equipment imply in CGL policies?

Exclusion h. under mobile equipment in Commercial General Liability (CGL) policies indicates that liability may be limited under specific circumstances. This exclusion generally specifies that certain types of mobile equipment, such as vehicles or machinery, may not be covered under the policy when they are being used or operated in specific ways. For instance, there could be limitations pertaining to use in racing, demolition, or other specific operational contexts that are deemed high-risk.

This nuanced language helps policyholders understand that while some mobile equipment may generally be excluded from coverage, there are scenarios where liability might still come into play, but under stricter conditions or limitations. Additionally, it is important for insureds to be aware of these limitations to avoid unexpected gaps in coverage, thereby ensuring they understand the full scope of insurance provided in their CGL policies.

The other options do not accurately represent the intent of exclusion h. Comprehensive coverage suggests an all-encompassing policy, which is not the case here. Claiming that all mobile equipment is excluded misrepresents the purpose of the exclusion, as it applies under particular conditions, and stating that all damages are covered contradicts the exclusion’s fundamental premise.