Loading and Unloading Issue

Our insured received a delivery and sent two employees out to unload the vehicle; this vehicle is not owned by or rented to our insured. The employees rested a ladder (this is owned by the insured) against the delivery truck. While they were unloading the truck, the ladder fell to the side and struck a parked car owned by a customer of the insured. The resulting property damage claim was reported to our insured's business auto insurer which denied coverage.

Would this claim be covered by the CGL form?

Tennessee Subscriber

The auto exclusion on the CGL form (which does apply to property damage arising out of loading or unloading an auto) prevents coverage when the auto is owned or operated by or rented or loaned to any insured. Presuming that the vehicle was not owned or operated by or rented or loaned to an entity that qualifies as an insured on your insured's CGL form, the auto exclusion will not apply. This was property damage caused by the actions of the insured's employees and this is the type of claim meant to be covered by the CGL form. Neither the auto exclusion nor any other exclusion on the CGL form would prevent coverage.