Q
Should the business auto or the CGL policy respond to a situation in which a fireplace, being delivered to the buyer's home scratches a floor? One of our clients sells fireplaces, and a floor was scratched during delivery of a fireplace unit. We turned the claim in to the auto carrier, but the adjuster denied it and said the CGL insurer should handle it. The men who delivered the fireplace also installed it. Which coverage should apply?
Ohio Subscriber
A
In general, the business auto policy covers “loading and unloading” from the time the article being transported is accepted until it is delivered to its final destination. The commercial general liability policy generally handles third party damages caused prior to acceptance and after delivery.
Therefore, you should determine the point at which the floor was scratched. The fact that the same individuals who delivered the fireplace installed it may make it more difficult to determine whether the delivery had been completed or not when the damage occurred. If the fireplace was in place in the home and installation had been started, the CGL should respond. However, if the men still were in the act of delivering it, the business auto policy should apply.
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