An agent insures a contractor who purchases a truck with an attached gin pole winch to keep at oil or gas sites. The insured plans to use it for moving items, picking up equipment that belongs to others and loading on trailers that belong to others. The insured only loads or unloads supplies or equipment from trailers that belong to others, not their own truck, which appears to be a commercial general liability exposure. The truck and the permanently mounted equipment are both insured on a business auto policy with ISO form CA 00 01 03 06. The general liability is ISO form CG 00 01 12 07.

Q: “Does the BAP’s exclusion of 'Operations' mean it will not respond to any damages that result from loading and unloading? Also, since the CGL includes the care, custody or control exclusion, where can we find coverage for the damage to the actual items being loaded and unloaded?”

A: “The ISO BAP covers ‘use’ of a covered auto. That's what this sounds like. The ISO CGL definition of ‘loading and unloading’ does not limit that definition to the vehicle in question. This is what the BAP exclusion says:

Movement Of Property By Mechanical Device

‘Bodily injury’ or ‘property damage’ resulting from the movement of property by a mechanical device (other than a hand truck) unless the device is attached to the covered ‘auto’. 

In other words, if the device is attached to the auto, movement of property—not just on or off the subject vehicle—is covered by the BAP, not the CGL policy. As for damage to the property being moved, neither the CGL nor BAP covers that. You'd likely need some form of inland marine coverage, similar to the ‘on hook’ coverage in tow truck forms.

Bill Wilson is director of the Big “I” Virtual University.

This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, email logon@iiaba.net to request login information.