Opinion ID: 1586390
Heading Depth: 1
Heading Rank: 5

Heading: overlapping of general risk and auto risk policies

Text: 4. The classification which places general or comprehensive liability policies covering risks incident to a business operation in a class separate and apart from liability policies covering risks incident to the operation of automobiles furnishes underwriters and others with descriptive tokens of expression which are convenient in designating the type of risk contract involved. In our decisions we have recognized the existence of these two classifications of risk insurance, [4] but in so doing we have not adopted the differentiating classification as establishing a rule of law which precludes the omnibus clause of an auto-liability policy from covering a general business risk or precludes a general-business-risk policy from covering an automobile risk. Since the language of the individual policy controls, it follows that two policies, each representing a different risk classification, may overlap in their coverage when applied to the facts of a particular case. See, Bituminous Cas. Corp. v. Travelers Ins. Co. (D. Minn.) 122 F. Supp. 197. The classification shield of itself affords no protection against liability where the risk in the individual case, regardless of its type, reasonably falls within the intent and meaning of the omnibus clause. This is particularly true in construction work performed by both general and subcontractors, as in the instant case, where it is established as an adjudicated fact that an act of negligence involving general business operations and an act of negligence relating to the operation and use of an automobile are blended together as the proximate cause of a single accident.