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The Commercial General Liability (CGL) form and the Business Auto policy (BAP) contain complementary language when it comes to a claim for injury or damage arising out of loading or unloading property from a motor vehicle. This complementary language is found in exclusions: The CGL form does not apply to claims arising out of the handling of property while it is being moved from an auto to the place where it is finally delivered; the BAP does not apply to claims resulting from the handling of property after it is moved from the covered auto to the place where it is finally delivered. So if one form excludes coverage, the other usually provides coverage. However, a dispute over which form applies to a claim often starts when it is not clear when the property is “finally delivered.”

For example, the insured delivers a refrigerator to a customer’s home. The insured brings the refrigerator into the kitchen and pushes it into place against the wall a bit too hard, poking a hole in the wall. Was the refrigerator finally delivered once the insured brought it into the home? Or into the kitchen? Or placed it against the wall? As another example, the insured delivers and installs a washer/dryer but does not properly install an O-ring, causing water damage. Is the faulty installation part of the final delivery or was the washer/dryer finally delivered once it was in place in the laundry room? Just what is the precise cutoff point after which unloading/final delivery ceases?

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