In the event of an auto accident caused by a company driver performing duties, which policy generally applies for auto liability?

• A. CGL
• B. Business Auto
• C. Workers' Comp
• D. Property

Answer: (B)

When a company vehicle is used for business and a driver involved in the operation causes an accident, the liability exposure is addressed by a Business Auto policy. This coverage is designed specifically for liability arising from the use, ownership, or maintenance of vehicles used in business. It covers bodily injury and property damage that third parties suffer due to the company’s autos, including owned vehicles and, depending on the form, hired or non-owned autos as well. The CGL isn’t the primary auto liability protector for business vehicles, though in some cases it can provide limited coverage if auto exposures are endorsed to the CGL. Workers’ Comp would only cover the employee’s own injuries, not third-party liability from the vehicle crash, and a Property policy protects physical damage to property, not auto liability. So the auto liability exposure in this scenario is generally handled by the Business Auto policy.