We issued a standard business auto policy to an Insured that is in the business of towing vehicles. He also has a Repair Plate endorsement. He picked up a car on his flatbed and took it to be dropped off at a dealership where it would eventually be put up for sale. At the time, there was no insurance on the car being delivered. The car was brought off the bed and driven across the street to its final destination, but in so doing, the insured operator struck a 3rd party vehicle. Does the liability coverage flow from the business auto policy since the car to be delivered was still in the process of being delivered? Or, is this something a GL policy should respond to? We have GKLL coverage for the car in the Insured's possession, my question more pertains to the vehicle that we struck.

Massachusetts Subscriber

Based on the scenario presented, the liability for the auto accident will fall on the business auto policy. The insured tow operator was covered for business auto liability and the vehicle in the accident was in the insured's care, custody and control at the time of the accident, and not yet delivered to the dealership.