This is a great article that illustrates some of the complexities that courts consider in order to deliver judgement. This article serves as a sobering example as to why every company should have a formalized driving policy and comprehensive automobile liability coverage. There are a couple key factors worth noting in this article that led to the court's ruling which required the insured's carrier, AIG, to pay for their insured's employees accident.
1.) Company gave permission to drive to and from work locations in employee's personal vehicle
2.) Compensation was provided for mileage
3.) Company more than likely has non-owned automobile liability which can provide coverage to employee's vehicles (for a qualifying event)
4.) Employee as Lessor endorsement - Used to afford coverage on a primary basis on an auto that is owned by an employee of the named insured and is described on the endorsement. Lastly and most importantly, this endorsement also modifies Who Is An Insured to include that "employee" as an "insured" on the policy.
In the event this automobile accident resulted in a third party lawsuit, in the absence of an Employee as Lessor endorsement, the employee (if also named in the lawsuit) would not have any indemnity or defense via the company's policy.
Article Starts Here:
An American International Group Inc. unit is obligated to provide coverage under the uninsured/underinsured motorist coverage endorsement of its commercial auto policy in connection with an employee’s accident while in her own car, says a federal court, in denying the insurer summary judgment in the case.
AIG unit National Union Fire Insurance Co. of Pittsburgh, Pa. issued an automobile insurance policy to New Waterford Ohio-based Dynamic Structures Inc., which does business as Clear Creek Oil Fields Solutions, effective July 1, 2017, through July 1, 2018, according to Thursday’s ruling by the U.S. District Court in Akron, Ohio, in National Union Fire Insurance Co. of Pittsburgh, Pa. v. Lauren Paterson. The policy provided up to $1 million in coverage.