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This is the “omnibus” clause and except for modifications required by the nature of the garage risk is quite similar to that contained in the BAP. With respect to premises and operations, the policy covers not only the named insured but also other owners, directors, and employees. For example, if a mechanic negligently injured a customer when a wrench slipped from his hand, the general auto insurance policy would cover both the garage and the mechanic if the plaintiff joined them in an action for damages. (Naturally, employees have no coverage for accidents occurring outside their employment.)
With respect to automobiles, the policy covers drivers and other responsible persons, in addition to the named insured, provided that the insured automobile is being used with the named insured’s permission. As an example, one might take the case of a mechanic delivering or road testing a customer’s car, or of an owner or salesman demonstrating an agency car. If an accident occurred, the policy would cover all these drivers in addition to the named insured. Moreover, it should be remembered that, under Division 1, coverages A and B apply to automobiles owned by the named insured while being used by principals and members of their families for pleasure purposes. An additional insured might also be, therefore, the dealer’s son while using an agency car for pleasure purposes during his summer vacation.
With respect to the omnibus clause, it is important to distinguish between cars owned by the named insured and cars owned by others. The clause does not cover an additional insured “with respect to any auto-mobile owned by him or by a member of his household.” If an employee uses a customer’s car or a car owned by the named insured either for garage business or for permitted pleasure uses, he is covered. If he uses his own automobile on garage business, the named insured is covered. But the employee is not covered under the GLP while using his own automobile either for pleasure purposes or for garage business. Such coverage would create an undersirable overlapping of general auto insurance with the FAP.

It will be remembered that the FAP excludes under Part I “an owned automobile while used in the automobile (garage) business” but that this exclusion “does not apply to the named insured.” On the other hand, the FAP does exclude all coverage on a “non-owned automobile while used in the automobile business by the insured.” It is therefore necessary to grant the employee coverage under the GLP for the use of customers’ cars and garage cars if he is to have any liability protection at all against this exposure. It is thus apparent that the GLP and the FAP supplement each other rather precisely as to coverage afforded on automobiles and persons connected with the automobile business.

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