| Q&A of the Week |
Rented Hall and Alcohol
A Kentucky subscriber recently asked the following question:
My insured is covered by an HO3 10/00. They will be renting a hall for their daughter's wedding. The hall would fall into the definition of an "insured location." My question surrounds liquor liability. The insured will be purchasing his own liquor and serving it to guests without charge. I would appreciate your comments on liability coverage under the homeowners, especially as pertains to a guest who leaves the reception intoxicated and injures others in an auto accident. It would seem that there is no coverage for the insured under the motor vehicle exclusion. Do you agree? If you do, is there any liability coverage under the insured's auto policy for this exposure?
ANSWER: That exclusion will not apply since it refers to property damage to that particular part of property that has to be repaired because the work was incorrectly performed on it. The employee was not actually performing work on the section of the couch when it was damaged. So, the exclusion, being read strictly, would not apply.
This gets tricky, as the liability issue itself gets hairy and various states view the liability of the host differently. There would be no motor vehicle coverage under the home since the guest is presumably driving his own vehicle. Coverage could also be excluded under the expected or intended injury exclusion, since it could be expected that letting a drunk guest get in a vehicle to drive would lead to injury of others. Likewise the auto policy will not provide coverage since the guest is driving his own vehicle for his own purposes.
Read More |
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| What's New This Week in FC&S |
Unusual Risks of Pool Ownership
The yin and yang of summer are a hot, steamy day and the cool, refreshing water of a swimming pool. Floating languidly at the local swim club or at a friend's house could cause one to desire a pool of his own, but several insurance considerations should come into play before installing an in-ground attractive nuisance. Read More |
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| Litigation Watch |
Limited Liability Company Coverage
This is an appeal from the U.S. District Court for the District of South Carolina. This case is Pennsylvania National Mutual Casualty Insurance Company v. Lewis, 2016 WL 3033203.
The insurer, Pennsylvania National Mutual brought a declaratory judgment action against its insured, Roger Lewis and his wife and his solely owned company, Excel Mechanical, seeking a declaration that it had no duty to defend or indemnify the insured in a bodily injury claim. Read More
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| Fraud of the Week |
Accident Fraud – California
AMOUNT: $13,709
A California fire captain and his brother, an insurance agent, were arrested on multiple counts of insurance fraud. Read More
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| FC&S Ask the Experts |
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?
Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).
Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.
Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here. |
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| Contact Us |
As always, your comments and questions are welcome.
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