Loading or Unloading Coverage Question

February 27, 2012

The insured had unloaded the floor buffer and performed the cleaning operation. The employee then was in the process of taking the buffer back to the vehicle and broke the glass on the door while taking the buffer through the door back out to the vehicle. Is this a loading/unloading operation and excluded under the CGL form and covered under the BAP?

On the same topic, the insured took the tool box out of the vehicle and was taking it into the customer's home and then scraped the car that was parked beside the insured vehicle. Would this be an unloading/loading issue and excluded under the CGL policy? We do not have the BAP policy for this insured.

Ohio Subscriber

We are of the opinion that these PD claims would be covered under the CGL form and not the BAP.

The definition of loading or unloading includes the handling of property after it is moved from the place where it is accepted for movement into or onto an auto; and, it includes the handling of property being moved from an auto to the place where it is finally delivered. Your last scenario about the tool box does not fit either description; the tool box was not being moved into or onto the auto, and carrying it to the house for work was not moving the tool box to a place where it is finally delivered.

As for the first scenario, the buffer was being taken back to the auto but it was not being moved from a place where it is accepted for that movement. The buffer was a machine belonging to the insured; the insured did not accept the buffer from the premises owner in order to move it someplace.

Both scenarios are cases of the insured causing PD through its operations and that is a CGL exposure.

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