Advertising and Auto Exposure for Insured

Our insured has paid to have his business name painted as advertising on a stock car used at the local race track Based on this, does the insured have a liability exposure if the vehicle is involved in an accident where there is a bodily injury or property damage claim?

Wyoming Subscriber

As to the question of whether the insured has a liability exposure, that is a legal issue that we cannot answer. You might want to ask an attorney who is familiar with the law in your area to see if the insured can be sued and held liable just because his advertising name is one the side of a car involved in a racing accident.

But, if the insured is sued for bodily injury or property damage, the general liability policy will at the very least provide a defense for the insured. There is no exclusion that would prevent this since the auto exclusion on the general liability policy pertains to the use or ownership of an auto that is owned or operated by or rented or loaned to any insured. That is not the case here. And should the insured be somehow found liable for the bodily injury or property damage, the liability policy will pay the sums that the insured becomes legally obligated to pay.

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