Post Date January 12, 2014 – Business Auto insurance Coverage is very different than Personal Auto Insurance. In the past, Business auto insurance would not cover and family members living in your household.  A recent court ruling states Underinsured Motorist coverage will be provided through a business auto insurance policy to cover a family member’s damages from an automobile accident although the vehicle He/she is riding in is not listed on the policy.

Business auto insurance coverage in a household can now be accessed

This judicial decision was made by a U.S. Appeals Court.  The case was filed in Illinois. The father’s Business Auto Insurance policy was being sought to pay medical insurance coverage for his daughter’s physical injuries from an accident. It involved a car that was not in his business auto insurance policy. U.S. District Court of Appeals for the Seventh Circuit handed down this decision.

The cased stemmed from a accident in Woodbine Township, Illinois on March 2008. Nicole Haight then was a passengers of a Chevrolet Geo Metro who got hurt when the car rolled over and down an embankment. The young girl was thrown from the car. Her injuries from the accident were very serious.

The Geo Metro’s personal auto policy coverage was exhausted of it’s $50.000 coverage limit In order to pay the girl’s extensive medical bills, her lawyer sought more compensation from the fathers Business Auto Insurance Policy. The law suit looked to access the the Underinsured Insurance coverage of $300,000 from the fathers Business auto insurance company.

The Business auto insurance company filed for a dismissal on Nicole’s claim based on the grounds that she was not a passenger a covered vehicle in the policy. But Nicole’s lawyers argued that she can be covered  the father’s policy has a clause that says “any family members” of the policyholder can be eligible for UIM Compensation.

The appeals court ruled that since the “covered auto” was not present on the portion of the policy that defines who are entitled to the UIM benefits, the UIM coverage shall extend to both the insured policyholder and his or her family members and shall not require “occupation of a covered auto.”