When a caravan is being towed and is involved in a fault motor accident, resulting in damage to third-party property, does the liability section of the caravan policy cover the damage to the third-party property?

A: No, only third-party injuries are covered

B: Yes, all third-party liabilities are covered

C: No, any third-party liability while being towed is excluded

D: Yes, providing the caravan had not become detached when the damage occurred

Answer:

B: The liability section of a caravan policy excludes damage occurring while the vehicle is being towed. This risk is covered by the motor policy of the towing vehicle