Your business auto policy and your commercial general liability policy are meant to complement each other. Some exclusions and definitions in these policies serve to carve a line that assigns coverage where the policies might otherwise overlap. For example, these policies have compatible provisions that place coverage for “mobile equipment” on the CGL policy and coverage for “autos” on the BAP. Another handoff occurs when vehicles are being loaded and unloaded. At what point does the BAP end and the CGL policy begin while unloading, and vice versa? What about when loading? The two policies attempt to bring clarity to this division, but it’s not always easy to interpret under all circumstances.
The typical CGL policy excludes “loading or unloading,” which means the handling of property after it is moved from the place where it is accepted for movement onto an auto, while it is on an auto or while being moved from an auto to the place where it is finally delivered. However, it does cover the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the auto. The typical BAP excludes the handling of property before it is moved from the place where it is accepted or after it is moved from the auto to the place of final delivery. However, it covers the movement of property by a hand truck, excluding other mechanical devices not attached to the auto.
As you can imagine, there can be differences of opinion over when acceptance of the property occurred and delivery at the final destination occurred. Opinions may vary over the meaning of a hand truck or mechanical devices, as well. Because of this type of interpretation problem, our agency recommends that the same insurance company provide your BAP and CGL policy. That way, if a claim occurs, the argument stays inside the insurer’s office walls and not in a courtroom. Please give us a call if we can help you erase the loading and unloading line and ensure seamless coverage.