Under PAP liability, which of the following is covered?

• A. Intentional damage
• B. Permissive use of insured's automobile
• C. Damage to property owned by the insured
• D. Injury to an employee in the course of employment

Answer: (B)

The key idea is what the PAP liability section actually pays for when someone else uses the insured vehicle. Under a Personal Auto Policy, liability coverage extends to others who are driving the insured car with permission, so a permissive user is covered for bodily injury and property damage they may cause to others. This means that if a permitted driver is involved in an accident, the policy can respond on their behalf up to the policy limits.

In contrast, intentional damage is excluded because liability policies don’t cover deliberate harm. Damage to property owned by the insured isn’t a third-party liability issue, so it isn’t paid under liability; that would fall under collision or other physical damage coverages for the insured’s own property. And injury to an employee in the course of employment isn’t covered by PAP liability, since workers’ compensation or employer’s liability provides that protection, not the auto liability policy.

So the option that PAP liability covers is permissive use of the insured’s automobile.