The CGL carrier denied the entire claim, citing the Transmission and Distribution Lines Exclusion Clause . The policy excluded "any loss arising out of any distribution line, regardless of negligence." The excavator's umbrella policy had a follow-form exclusion. The company had no separate "utility lines coverage" endorsement.
While specific wording varies by carrier and jurisdiction, a typical T&D exclusion might read similarly to the following: transmission and distribution lines exclusion clause
Most versions of the clause include a "carve-back" or exception based on the distance from the insured structure. Property within this boundary remains covered. The CGL carrier denied the entire claim, citing
: In some markets, the exception may extend to property within 1,000 meters of the premises. Impact on Businesses and Utilities While specific wording varies by carrier and jurisdiction,
The is a risk allocation mechanism used primarily in:
The premium will be based on "mileage" and "replacement value."
Variations exist depending on jurisdiction, policy type, and bargaining power of the parties.