Erroneous Delivery and the BAP

Q

Our insured is in the business of retail fuel oil supply. He sells the fuel oil and also delivers it to the customer's tank. Regarding erroneous delivery, does the business auto form apply to a claim?

Rhode Island Subscriber

A

The business auto policy (BAP) does not respond to claims for erroneous delivery of oil (such as putting the oil into the wrong tank or delivering it to the wrong address). The BAP does cover some claims involving the handling of property from the time the property is picked up for movement until after it has been moved from the covered vehicle to the place where it is finally delivered; but there is no post-delivery coverage. In fact, the BAP has a completed operations exclusion that applies to damages arising out of the work of the insured after that work has been completed. Therefore, the BAP excludes coverage for any damages based on the insured's delivery of oil to the wrong tank or delivery of the wrong fluid to the oil tank.

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