Wrongful death actions are obviously complex, not just emotionally and financially for the family, but can also be confusing. In handling a wrongful death action, one of the first things that must be done is to determine if an applicable insurance policy covers the circumstances that give rise to the wrongful death. Obviously, if a motor vehicle caused the accident, the operator’s car insurance policy would typically apply. However, what other insurance policies might apply? In this article, we want to address some of the common insurance-related issues that our Eason and Tambornini wrongful death attorneys are regularly asked. In particular, we will discuss situations where a car owner’s insurance and/or a homeowner’s policy would apply to a wrongful death action. We will also cover situations whether a business insurance policy or a life insurance policy might apply to a wrongful death action.
Generally, if the operator was a “permissive user” of a vehicle owned by someone else, the vehicle owner’s insurance policy also applies. A permissive user is broadly defined as anyone who had actual or implied permission to drive the vehicle, contrasted with someone who stole it.
However, all too often, we have to deal with the policy not applying because the user was an “excluded driver” on the owner’s insurance policy. When an insurance company is aware that multiple drivers may live in the same household, they will often require that all drivers be expressly listed on the policy, or expressly excluded. This is to avoid one person with a good driving record being the policy owner and then always loaning their car to someone with a poor driving record. The insurance company understandably doesn’t want to insure the poor driver without receiving a premium.
If the operator was an adult who lived in the owner’s home, it is important to make sure that the policy had language that expressly excluded the operator as soon as possible. Depending on the insurance company, excluded drivers are often listed in the endorsement. Consequently, when in doubt, we always request a copy of the policy’s declaration page and endorsements.
Homeowners, renters, and property owner policies, also known as premises liability policies, usually apply only to incidents that occur on the property. Homeowners and property owners policies virtually never apply to motor vehicle-related accidents. However, if someone falls or is injured on someone’s land, the most likely applicable policy would be the homeowners, renters, or property owners’ policy.
Unfortunately, even if the insured under the policy committed an “intentional act” that caused the wrongful death of another, those policies are generally not applicable. Where the matter becomes more complicated is if the death was intentionally caused by someone who was not on the policy itself. Sometimes, if there is a claim for negligent supervision, negligent entrustment, or another form of negligence by the homeowner, the policy might apply. Likewise, most homeowners policies do not cover the death of one of the policyholders themselves.
If the person who caused the wrongful death was in the course and scope of employment for their employer when the death was caused, the business owner’s insurance policy would often apply under the theory of respondeat superior. The theory of respondeat superior is a Latin phrase literally translated as “let the master answer.” This business owner policy could apply not to a wrongful death caused by a car accident but could also apply to the wrongful death caused on a business’s premises.
Generally, life insurance applies if the person it insures passes away regardless of fault. Consequently, even if another person caused the death, the beneficiaries of a life insurance policy can collect the life insurance benefits and recover damages from the person that caused the accident.
People should also check with the life insurance policy to determine if there was an accidental death benefit rider. Many of these provisions provide for what is now as “double indemnity” or “triple indemnity.” In other words, if the policy has these provisions, and an accident caused the death, the policy may pay double or potentially triple the normal face amount.
What can you do?
If you have suffered the wrongful death of a loved one, applying for life insurance benefits is simple and can be easily done without an attorney. However, meeting with an experienced Eason & Tambornini wrongful death attorney is something you should seriously consider to see if other policies apply. The many stages of grieving likely cloud your own thoughts as to whether or not a policy applies can have many unique twists.
If you would like a free consultation with one of our Eason and Tambornini Sacramento wrongful death attorneys, please do not hesitate to call or write.
