Handling of Property Causes Property Damage

July 5, 2011

We have a BAP with symbols 8 and 9 for liability coverages. Our insured hired a company to deliver goods to a residence. The delivery company apparently subcontracted the work further to someone else. During the delivery, this party stacked the goods against a garage door, damaging the door. We see this as a loading and unloading situation to be addressed under the BAP and not the GL policy. Are we correct that exclusion 7 in the BAP (Handling of Property) would not apply since the damage occurred during the unloading process?

Indiana Subscriber

Exclusion 7 is not applicable in this situation. That exclusion applies before or after the property is picked up and delivered to its final destination in which case the PD may be covered by the CGL form. But if the PD occurs while the delivery is in progress, then the BAP applies and exclusion 7 is not applicable. Your insured may or may not ultimately be held liable for the damage, but if so, there is no exclusion in the BAP to prevent coverage for the claim.