Trucker Driving to his Home Where Truck is Garaged is Still Working for Employer

Read the full article at https://www.linkedin.com/pulse/whos-first-employers-insurer-while-driving-home-zalma-esq-cfe and at https://zalma.com/blog plus more than 4100 posts.

INSURERS SHOULD AVOID LITIGATING OVER WHO INSURES WHAT

It should be axiomatic that insurers who both insure the same person should resolve coverage disputes rather than litigate. When two insurers disputed which was required to defend and indemnify an insured they brought about a necessary appeal when they could have, and should have, resolved the dispute directly or with the assistance of Alternative Dispute Resolution like mediation.

Acuity, A Mutual Insurance Company (“Acuity”) preferred to litigate and, after losing, appealed the decision of the Butler County Court of Common Pleas granting summary judgment to Great American Assurance Company (“GAAC”). In Great American Assurance Company v. Acuity, A Mutual Insurance Company, et al., 2022-Ohio-501, No. CA2021-08-097, Court of Appeals of Ohio, Twelfth District, Butler (February 22, 2022) the Court of Appeals resolved the dispute between insurers.

FACTS

The trial court granted GAAC’s motion for summary judgment and denied Acuity’s motion. In so doing, the trial court held that “based upon the undisputed facts, * * * the GAAC Policy does not provide coverage based upon the application of the GAAC Policy’s Trucking or Business Use Exclusion.”

The Court of Appeal concluded that when a driver is operating a vehicle in the business of a motor carrier on a customary route, short personal detours do not take the driver out of the business of the motor carrier and that Winsted was operating the Truck “in the business of Hafer at the time of the accident.” This is because Winsted had completed his short personal detours and returned to his customary route home before the accident occurred. 

Because the Trucking or Business Use Exclusion conclusively resolves this dispute. Finding no error in the trial court’s decision granting summary judgment in favor of GAAC.

ZALMA OPINION

The court's decision could easily have been reached if the two insurer’s adjusters met and reviewed the facts rather than turning the dispute over to lawyers.

© 2022 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders.

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