The exclusion bars general liability coverage for bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment to others of any auto owned, operated, rented, or loaned to the insured.
It channels auto exposure to a separate commercial auto policy.
Alternative Names:
Aircraft Auto and Watercraft Exclusion, Automobile Exclusion
Why it Matters?
The exclusion creates disputes where a claim arises from an activity involving a vehicle but is framed as negligent supervision, hiring, or premises maintenance rather than vehicle operation. Courts examine whether the injury arose out of use of the auto, and framing does not control. Loading and unloading operations are a recurring gray area where general liability and auto coverage overlap or, occasionally, where neither responds.
Frequently Confused with
Related terms
Frequently asked questions
Can pleading negligent supervision avoid the auto exclusion?
How are loading and unloading treated?
