When purchasing insurance, it is important to purchase coverage that meets your needs.
In British Columbia, motor vehicle insurance is regulated and provided by the Insurance Corporation of British Columbia ("ICBC"). However, ICBC may also provide coverage for "licensed mobile equipment." Licensed mobile equipment is a broad term that can include items like tractors, farming equipment, crane trucks and more.
Unfortunately, it is not always clear when ICBC covers licensed mobile equipment. This post aims to help clarify when ICBC coverage for licensed mobile equipment may be in place, and what to do to ensure coverage in all circumstances.
When will ICBC coverage typically apply?
ICBC primarily covers licensed mobile equipment when the equipment is operated on public roads. For example, if you are driving a tractor on a road adjacent to a farm, and a collision occurs, ICBC may provide coverage.
ICBC coverage will typically extend to property damage and bodily injury, subject to the specific terms and conditions of each policy.
While ICBC can provide coverage in these situations, it is not a guarantee that they will. A failure to keep your policy up to date (for example, not properly describing the equipment as changes occur over time) may lead to a denial of coverage. Similarly, a failure to properly assess the risks of operating the equipment may lead to gaps in coverage if there are severe injuries or damage.
Finally, it is important to remember that ICBC is not able to insure equipment against every contingency. Even if you have coverage through ICBC, it may be worth considering additional or excess coverage. Some specialized items may need excess coverage beyond what ICBC can usually provide.
We recommend you speak to a qualified insurance broker about applicable coverages and exclusions on any equipment you intend to operate on public roads.
When will ICBC coverage not apply?
Even if you have purchased a policy through ICBC, that policy is not always applicable. For example, ICBC will often not cover damage or loss while being transported by private barge transit, or while equipment is being operated as its mechanical function.
Additionally, as mentioned above, some equipment is so specialized that ICBC cannot adequately provide coverage. It is always best to talk with a broker to assess the potential risks and coverage available to your equipment.
Conclusion
In summary, when it comes to licensed mobile equipment, coverage can be confusing and complicated. It is important to make sure proper coverage exists and to be aware of the gaps in your coverage – whether provided by ICBC or otherwise.
If you are unsure of whether your equipment needs coverage, or what amount or type of coverage is right for your equipment, contact a qualified insurance broker.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.