Loading or Unloading Coverage Dispute

The question we have is in regard to which policy covers the following loss. The insured is a furniture delivery company. While delivering a couch, the employees placed the couch on the floor to reposition it for carrying it to the final resting spot. The couch leg snagged the carpet and damaged it. Is this damage covered under the commercial auto policy or the general liability policy?

Kentucky Subscriber

Since the couch was not at the place where it was to be finally delivered, the property damage claim should be handled by the auto policy. The loading or unloading exclusion on the general liability form applies to property damage due to the handling of property while the property is being moved from an auto to the place where it is finally delivered. The handling of property exclusion on the auto policy applies to property damage resulting from the handling of property after the property is moved from the covered auto to the place where it is finally delivered by the insured. The two exclusions on the two policies complement each other in this way so as to give the insured liability coverage for property damage he causes while delivering or moving or handling property, both while the property is in the loading or unloading phase and while it is in the auto itself.