The Jones’ new next-door neighbor decides to take her 100-pound golden retriever for a walk, which gives her the opportunity to scope the new neighbors and their possessions. The dog makes a beeline for the headboard assuming it to be the latest replacement for mail box post which serves as a local substitute for a distant fire hydrant. As the dog’s owner tries to prevent him from marking the new neighbor’s possessions with the call of nature, the headboard falls on the nosy neighbor and breaks a bone in her foot.
Who defends, who pays? As the accident occurred in a state which adheres to the “coming to rest” doctrine, the CGL insurer is “on the hook.” Unfortunately, Ajax Moving & Storage being located in a “complete operations” state never purchased CGL coverage.
So the long and short of it is this: Always protect yourself by having both auto and CGL insurance coverage. And, whenever possible, always have both policies with the same insurance carrier because this will prevent each insurance company from pointing to the other for coverage. By having them with the same carrier, they must pay whether they consider it automobile or general liability and it keeps you out of the middle.