We are confused about the loading and unloading issue when it comes to coverage under the CGL form and the BAP. Can you give us some guidance on this issue?

Arizona Subscriber

The CGL form and the business auto policy have wording in the exclusions sections that correspond with one another; that is, what the CGL form excludes, the auto policy covers and vice-versa.

If the insured has both the CGL form and the BAP, he has liability coverage before moving property onto a covered auto (the CGL form), while the property is being loaded onto the auto (the BAP), while the property is being transported on the covered auto (the BAP), while the property is being unloaded from the auto (the BAP), and after the property has been finally delivered (the CGL form). Either the BAP or the CGL form will respond to a liability claim from a third party based on the moving of property.

As an example, if the insured would have injured someone while walking into a warehouse before picking up a sofa, the CGL form would apply. If the insured picks up the sofa and injures someone while moving the sofa to the covered auto, the BAP will respond. Similarly, if the insured is loading the sofa into the vehicle or unloading it from the vehicle and injures someone, the BAP applies. If the insured unloads the sofa and lets it rest on the sidewalk where someone trips over it, the BAP applies. If the insured is in the process of delivering the sofa but has not yet delivered it to its final resting place and injures someone during that delivery, the BAP will apply to a claim. Only after delivering the sofa to its final destination can the insured rely on his CGL form to respond to a claim.

Also note that loading or unloading does not include the movement of property by means of a mechanical device (such as a forklift) that is not attached to the vehicle. If a hand truck is used, this is included in the action of loading or unloading and a claim arising from that use would be excluded under the CGL form and covered under the BAP.