In which scenario does BAP cover liability arising from the escape of pollutants?

The correct scenario in which a Business Auto Policy (BAP) covers liability arising from the escape of pollutants is when a covered delivery truck discharges diesel fuel into a stream following a ruptured fuel tank in an accident. This situation falls within the auto liability coverage of the policy, as it involves the operation of a covered vehicle and an incident that occurs during the use of that vehicle.

Under the BAP, pollution coverage is typically limited to instances where a vehicle is involved in an accident that causes the release of pollutants. In this case, the truck was directly involved in the accident, leading to the discharge of diesel fuel, which constitutes a pollutant.

In contrast, the other scenarios do not meet the criteria for coverage under a BAP. A vehicle parked in a garage does not involve an accident or operation that would trigger coverage for pollution liability. An underground storage tank leak is a separate issue related to property, and typically falls under environmental or commercial liability policies rather than vehicle liability. Water damage from a defective sprinkler system also does not involve vehicles and would generally be covered by property insurance rather than the BAP, which is focused on auto-related incidents.