Automobile Insurance Exclusions Target And Affect Peace Officers

Posted by ANTHONY P. DONOGHUE

Insurance companies are increasingly drafting personal automobile insurance policy exclusions that both directly target and indirectly affect peace officers and other emergency personnel. These exclusions have significant effects on you while operating both work and non-work vehicles, regardless of whether or not you are on duty.

New Exclusions That Specifically Target Law Enforcement

While representing a police officer involved in an on-duty motor vehicle collision, we recently became aware of a Farmers Insurance policy that includes the following exclusion (emphasis added): We will not cover bodily injury or property damage resulting from the use of any vehicle by an insured person in an emergency occupation on a full-time, part-time or volunteer basis. Such occupations include, but are not limited to, Fire Fighting, Police or Ambulance activities. This exclusion does not apply to any vehicle described in the Declarations, an additional vehicle, replacement vehicle or substitute vehicle, while used by an insured person in such activities.

As you can see, this exclusion unequivocally targets law enforcement and is not limited to on-duty situations. The exclusion, therefore, has significant effects to you both on and off duty.

Liability Coverage: Under this exclusion, you may be denied liability and property damage coverage whenever you operate a vehicle that is not designated in your declarations page simply because of your job in law enforcement. This means that your insurance carrier may deny coverage if somebody makes a claim against you whenever you operate a vehicle owned by a friend, family member, your employer or anybody else.

For example, you are off duty and driving home in your patrol vehicle. On your way home, you are involved in a collision with another vehicle and the driver of the other vehicle makes a claim against you personally. Your personal insurance coverage may be denied because of your job.

Another example: You have been in Tahoe on vacation for a week. It is snowing and your friend lets you drive his all-wheel-drive Subaru so that you can re-stock your personal food and drink supply. On your way to the store you are involved in a collision with another vehicle and the driver makes a claim against you. Your insurance coverage is denied. It does not matter that this situation has nothing to do with your employment, it only matters that your employment happens to be in law enforcement. Once again, you may be on your own to retain counsel or otherwise protect your personal assets against the claim.

Uninsured/Underinsured Motorist Coverage: You also may be denied Uninsured/Underinsured Motorist (UM/UIM) coverage whenever operating any vehicle that is not designated in your declarations page. When driving your patrol vehicle, a friend’s car or any other vehicle, you are exposed and at the mercy of the uninsured and underinsured drivers of the world.

UM/UIM coverage is designed to compensate you, insured family members and your passengers when there is an accident and the other driver is both legally responsible for the accident and considered “uninsured” (no insurance)  or “underinsured” (less insurance than you).

Absent these exclusions, in most cases, coverage extends to you in the course and scope of your employment while operating your patrol vehicle. For example: Phillip, a patrol officer in the course and scope of his employment, is operating his patrol car through the intersection of Main Street and 1st Street on a green light. A drunk driver fails to stop at the red traffic light and t-bones Phillip. Phillip injures his neck and shoulder. The drunk driver carries $100,000 in liability coverage. Workers’ compensation pays out $90,000 in medical, 4850 and permanent disability benefits to and/or on behalf of Phillip. The workers’ compensation carrier accepts $30,000 out of the $100,000 third-party insurance settlement in full and final satisfaction of its $90,000 lien. Philip has $500,000 in UM/UIM coverage. Phillip can still collect up to $340,000 from his personal UM/UIM insurance policy.

Another example: Pete, a police officer in the course and scope of his employment, attempts to apprehend a criminal suspect following a drug sell. The suspect jumps into a car and intentionally rams Pete’s police vehicle. Pete suffers a fractured sternum and left leg fracture and undergoes a lumbar fusion surgery. Workers’ compensation pays out $150,000 in medical, 4850 and permanent disability benefits to and/or on behalf of Pete. Pete is medically retired from the department. The criminal has $15,000 in automobile coverage. However, his insurance company is denying coverage due to the fact that criminal’s conduct was intentional. Pete has $1,000,000 in UM/UIM coverage. Pete can collect up to $850,000 from his personal UM/UIM insurance policy.

Coverage may be denied in both these examples, however, if your current policy excludes coverage resulting from the use of any non-declared vehicle if you work in law enforcement.

Other Common Exclusions That Affect Law Enforcement Personnel

The other common way your personal automobile insurance company excludes coverage for peace officers is while operating a patrol vehicle. For example, Mercury Insurance Company may deny coverage to peace officers who are injured in their patrol vehicles under the “non-owned vehicle available for the insured’s regular use” clause. Similarly, Farmers Insurance may deny coverage to peace officers who are injured in their patrol vehicles under an exclusion arising from “use of any vehicle that is part of a fleet or pool of vehicles provided for the regular use by an insured person in the course of his or her employment.”

Although these exclusions do not explicitly target peace officers, the effect of the exclusions are the same whenever operating a patrol vehicle. Further, they apply while driving your patrol vehicle both on and off duty.

What You Can Do To Maximize Your Coverage

Know Your Policy. Contact your insurance agent/company and obtain a complete copy of your automobile insurance policy.

Extend Your Coverage. Some insurance companies offer an extension of coverage, sometimes referred to as a Broad Based Coverage Endorsement, so that you can be covered while operating any vehicle despite your occupation as a Peace Officer. Ask your insurance agent how these exclusions can be overcome.

Increase Your UM/UIM Policy Limits. We recommend that you purchase a minimum of $1,000,000 in UM/UIM coverage. Imagine that you are injured in a motor vehicle collision and are no longer able to work in law enforcement. Will $15,000 be enough to compensate you and your family?

You should contact an attorney experienced in matters involving insurance coverage if you have any questions regarding your personal automobile insurance policy.

Anthony P. Donoghue is an associate attorney in the Civil Litigation Department at Mastagni, Holstedt, Amick, Miller & Johnsen. John P. Tribuiano III is a senior associate attorney in the Civil Litigation Department at Mastagni, Holstedt, Amick, Miller & Johnsen. For more than 35 years, the attorneys of Mastagni, Holstedt, Amick, Miller & Johnsen have served clients throughout California in a wide range of civil law matters, including labor and employment law, wage and hour litigation, personal injury, workers’ compensation, disability retirement, Social Security disability appeals and public employment contract negotiations. The Civil Litigation Department routinely represents public safety officers in matters involving insurance coverage.