Garan recently obtained summary disposition in an insurance declaratory action in Oakland County Circuit Court, determining that an insurer owed no coverage for a motor vehicle accident resulting in bodily injuries. At issue was an exclusion in the policy that applied if the vehicle was used as part of a “ride sharing activity.” The insured wife, riding as a passenger, was on a delivery service app as a food deliverer and had just accepted a food delivery order when her husband, driving their vehicle, struck a pedestrian.
The wrinkle in this case was that the husband purportedly did not know his wife was on the app or had accepted a delivery when the accident occurred; he thought they were taking their children to lunch.
The Court held that the dual purpose of the trip and the husband’s lack of knowledge were immaterial; once the wife was on the app and especially once she accepted a delivery, they were engaged in a “ride sharing activity” as that term was defined in the policy of insurance.
The case was handled by Shareholder Peter Worden of Garan’s Traverse City, MI office.
Have questions regarding coverage under an insurance policy? Email Garan’s Insurance Coverage Analysis & Practice Group at insurancecoverage@garanlucow.com, and a member of our team will be in touch with you within 24 hours.