Providing a “Courtesy Defense” Does Not Create Coverage by Estoppel 

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An insured who refused liability coverage and only insured the vehicle for property damage to the insured vehicle, cannot demand payment for defense or indemnity when sued for negligent operation of an automobile. 

In Security National Insurance Co. v. Maria Gonzalez, Juan Gonzalez, Alma Reyes, and Hermelo Reyes, Alma Reyes and Hermelo Reyes, v. Maria Gonzalez And Juan Gonzalez, Case No. 2D18-3427, Case No. 2D19-2050, District Court Of Appeal Of Florida Second District (March 26, 2021) the insurer appealed an adverse judgment. 

ZALMA OPINION 

Security, as an expression of charity, provided what it called a “courtesy defense” to its insured even though there was no question the policy provided no coverage for bodily injury to third parties since the insureds had rejected that coverage in accordance with Florida law. To try to change its eleemosynary action into coverage to pay the $679,526.03 judgment was improper, unfair, and unconscionable. The good deed was punished with litigation.