Under Personal Liability coverage, which of the following situations would NOT be covered?

In the context of Personal Liability coverage, the situation where the insured takes a neighbor's boat without permission is not covered because liability insurance generally does not extend to unauthorized use of a vehicle or property. This principle holds that the insured must have legal permission to use the property. By taking the boat without consent, the insured is engaging in an unlawful action, which falls outside the protections of liability coverage.

In other scenarios, such as operating the boat as a taxi service or fishing charter (even though there are specific liabilities associated with commercial activities), the insured is still on permissible grounds as they have been entrusted with the boat, which would invoke coverage. However, the unauthorized use clearly violates the terms typically laid out in personal liability policies, which are structured to protect against inadvertent incidents occurring during lawful use. This distinction is crucial for determining the extent of liability coverage provided in personal insurance situations.