March 18, 2013

Our insured is a towing company. The insured was towing a car out of a ditch with a winch cable with controls on back of the tow truck. The tow truck is parked and not moving but is the source of the power for the winch.

The car being towed slides into a second car that is parked close by to the ditch. Damage to the car being towed is under the insured's GKLL coverage, but where does damage to the second car fall? Would the damage for which the insured is liable be covered under the BAP or the CGL form?

Minnesota Subscriber

This is going to be a BAP claim. The damage arose out of the ownership and use of an auto. The towing equipment is attached permanently to the vehicle and is part of the vehicle and the definition of mobile equipment is not on point here. The property damage to the second car definitely arose from the use of the auto and that is excluded under the CGL form.