This case involves a business auto liability policy declaratory judgment action. A female senior executive employed by a bank was driving to a work-related event in her personal vehicle. Because the woman was running late to the event, she began speeding at 20 mph over the limit. She was also using her phone to respond to emails relating to the event whilst driving. The woman ultimately caused an accident, totaling her car as well as the car she hit. The subsequent action involved determining the coverage that would be provided based on the scope of coverage offered employees using their personal vehicles while on the business affairs of the employer. An expert in insurance claims was sought to determine whether the language of the business affairs of the insured bank could extend to an employee of the bank using her personal vehicle at the time of the accident.
Question(s) For Expert Witness
- 1. For insurance policies like the one used by the law firm, how are they paid out?
- 2. How are employer insurance forms used?
- 3. For what types of employees are they applicable?
- 4. When the insured is the employer, does a personal affairs or business affairs clause apply to a managing partner?
Expert Witness Response E-006759
Most insured companies have a blanket policy in effect. Their policy would certainly be in use for this claim. The funds available would be paid out after a judgment was finalized. The underwriting office makes the determinations for coverage, and those forms are readily available. All employees for such companies that write coverage will issue an insurance card to its employee to be used in any circumstances that could arise while in their job description. The employee is covered from the time he or she touches a vehicle to conduct business. This includes all insurance carriers associated with this business.