Available Autos, Western Wildfires and Parental Liability

Analyzing When Autos are Available
Commonly referred to as the “company car exclusion,” the “furnished or available for your regular use” exclusion can apply to a lot more than that. In addition, what constitutes “regular”? For example, if you rent a car on vacation for a week, is that “regular?” How about a month-long rental? How about 90 days? At what point is the vehicle available for your regular use?

This is a widespread and potentially catastrophic exposure faced by your clients, and a situation that has been extensively litigated. The problem? Apparently the courts agree that the policy wording is not ambiguous, but they can’t agree whether it’s covered or not. It depends on each unique situation.

For the full article, click here.

Insurance Implications of Western Wildfires
Will drought conditions this summer and fall bring about a repeat of the widespread wildfires witnessed over the past eight years? If so, are there any insurance implications your clients should be aware of?

Obviously, both personal and commercial property forms cover the peril of fire, along with providing temporary coverage on a broader basis while property is relocated to protect it.

Often, though, claims are limited to Additional Living Expenses (ALE) when there is no direct damage. So, an important coverage is provided by the Civil Authority clause. Specifically, it says, “If a civil authority prohibits you from use of the ‘residence premises’ as a result of direct damage to neighboring premises by a Peril Insured Against…” you have ALE coverage. The question is, what are “neighboring premises”? Does the coverage require damage to the property next door or will it be triggered by damage a mile away?

This article examines this policy provision, along with seven others that could be impacted by a conflagration. Click here for the full article.

Parental Liability and the PAP
Your insured was told by his attorney to title and insure a car in his 16-year-old son’s name to minimize the family’s liability exposure. According to the attorney, if his son kills somebody, the parents’ assets can’t be touched. (Question: Why can’t we practice law without a license, but an attorney can provide risk management advice without an insurance license?)

The first issue of whether or not mom and dad can be sued is a legal question, not an insurance question. That said, there are many legal bases for filing a lawsuit, from direct liability to parental liability to non-parental vicarious liability.

First and foremost, could insuring vehicles in this manner within a family create any uninsured or inadequately insured exposures? Yes! Is there any chance that this “solution” could still leave the family exposed to un(der)insured losses? Yes! Are there moral issues to be considered? Yes!

For a complete analysis and an explanation as to why this is, in most instances, not the best way to insure a vehicle under these circumstances, click here.

Bill Wilson (bill.wilson@iiaba.net) is director of the Big “I” Virtual University, an online learning center for agents and brokers. Do you have coverage questions? If so, log in to the Virtual University at www.independentagent.com/VU and click on the “Experts” link near the top of the page.