Towed Vehicle Causes Damage—Which Policy Provides Coverage?

Our insured is a towing company. It has a standard business auto policy with a garagekeepers endorsement and the covered auto symbols are 7, 8, and 9 for liability coverage. Out insured was hired to tow a vehicle and in the process of towing the vehicle, the vehicle being towed struck a parked car.

Would the liability coverage be provided by our insured's policy? Or, would primary coverage come from the policy for the vehicle being towed?

Ohio Subscriber

Through the use of symbol 9, the business auto policy provides liability coverage for autos not owned by the named insured that are used in connection with the named insured's business. We would see the towed vehicle as being used in connection with the business of the named insured, which is towing. So, that makes the towed vehicle a covered auto under your insured's policy.

Now, since the towed vehicle is a covered auto that is not owned by the named insured, the coverage is excess over any other collectible insurance. (This presumes that the towed vehicle is not a trailer.)