Under a CGL policy, mobile equipment is explicitly not covered under which circumstance?

In a Commercial General Liability (CGL) policy, mobile equipment is typically defined as machinery or equipment that is designed for use off public roads, such as forklifts or bulldozers. However, there are specific circumstances outlined within the policy regarding coverage limits for such equipment.

When mobile equipment is "on a covered automobile," it becomes part of the automobile liability exposure and is therefore excluded from coverage under the CGL policy. This is due to the fact that the CGL is not intended to cover incidents that occur while mobile equipment is being utilized on or attached to a covered vehicle, as such situations involve automotive risks that are already addressed under the automobile policy.

This principle helps delineate the boundaries of coverage between different types of insurance policies, ensuring that each policy responds to specific risks appropriately. Thus, understanding the specifics of where coverage applies and where it does not is critical for both agents and policyholders in managing their insurance needs effectively.