Does a BAP Cover Loading and Unloading?

• By: The Big "I" Virtual University
• August 15, 2025

An agency provides coverage to a specialty packing and crating company. The company is not a residential mover but occasionally moves specialty items. The moving or unloading and loading of items is more incidental to overall operations, but the exposure is there. For example, it’s not uncommon for the company to move a pool table. Mechanical devices are not involved. 

The agent thinks the coverage for loading and unloading is provided by the business auto policy, for which the company has the ISO CA 00 01 10 13 form. The company has Symbol 1 coverage. However, the BAP and the commercial general liability policies are not with the same carrier, as the agency has been unable to place the CGL with a standard carrier.

The BAP has the following exclusion:

7. Handling Of Property

“Bodily injury” or “property damage” resulting from the handling of property:

a. Before it is moved from the place where it is accepted by the “insured” for movement into or onto the covered “auto”; or

b. After it is moved from the covered “auto” to the place where it is finally delivered by the “insured”.

Q: Does the exclusion also exclude property damage to others on the auto in the process of loading or unloading? The company has bailees coverage to protect the items being moved, but the agent is worried about property damage if it occurs when loading or unloading.

Response 1: I agree that the property damage exposure for loading and unloading is covered by the ISO BAP, but that coverage is limited. Anything beyond the scope of the policy—carrying the pool table up the steps and positioning it in the billiard room, for instance—becomes the province of the CGL. 

It’s essential that the policies be written by the same insurer to avoid a gap in coverage. Further, although you may have inland marine coverage for the goods being moved, there’s often a need for other coverage for other goods that come into the insured’s care, custody or control. For instance, the insured might be called upon to move a home theater system to make room for the new pool table. 

You need to study the entire operation to determine all of the exposures and then recommend appropriate treatment for those exposures.

Response 2: Damage to the item being moved is excluded by the care, custody or control exclusion in the BAP.

1. 6. Care, Custody Or Control

“Property damage” to or “covered pollution cost or expense” involving property owned or transported by the “insured” or in the “insured’s” care, custody or control…

It is important to check the language in the bailee coverage you’ve placed to make sure it covers damage done during loading and unloading.

Your CGL does have an absolute auto exclusion:

g. Aircraft, Auto Or Watercraft

“Bodily injury” or “property damage” arising out of or resulting from the ownership, maintenance, use or entrustment to others of any aircraft, “auto” or watercraft. Use includes operation and “loading or unloading”.

This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the “occurrence” which caused the “bodily injury” or “property damage” involved the ownership, maintenance, use or entrustment to others of any aircraft, “auto” or watercraft.

Given that your CGL has an absolute auto exclusion, it is important to confirm periodically that no moving is being done with a mechanical device not attached to the auto. Although you stated this is not the case, it could be an issue and is worth double-checking.

Response 3: The BAP exclusion for the handling of property means that coverage does not apply to injuries or damages that occur before the property is loaded onto the insured auto or after it has been unloaded from the auto. It applies to the property of anyone other than the insured and the insured’s customer. The care, custody or control exclusion applies to the insured’s property or that of its customers.

For example, say the property in question is sitting on a loading dock waiting to be loaded onto an arriving truck and someone trips over it and is injured. If the injured person sues everyone, including the shipper, the BAP will not provide a defense for the shipper. Rather, the shipper’s CGL insurer should provide a defense, assuming that the policy includes the ISO CGL Coverage Form CG 00 01 04 13.

This question was originally submitted by an agent through the Big “I” Virtual University’s (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.

This article is intended for general informational purposes only, and any opinions expressed are solely those of the author(s). The article is provided “as is” with no warranties or representations of any kind, and any liability is disclaimed that is in any way connected to reliance on or use of the information contained therein. The article is not intended to constitute and should not be considered legal or other professional advice, nor shall it serve as a substitute for obtaining such advice. If specific expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought.