Third Circuit Addresses Auto Business Exclusion

In its recent decision in the case of Liberty Mutual vs. Sweeney, No. 11-4074 (3d Cir. Aug. 2, 2012), the Third Circuit Court of Appeals reversed judgment in favor of an insurer after finding that the auto business exclusion barring coverage for injuries sustained while using a non-owned motor vehicle in any kind of auto business did not apply to injuries sustained while the injured party was using a vehicle of another business for the purpose of running a personal errand, and even though the errand involved delivering a rental vehicle to a customer.  

 

The auto business exclusion in the case read, as follows:  "We will not pay for bodily injury sustained while using a non-owned motor vehicle in any kind of auto business.  Examples of auto businesses are: selling, repairing, servicing, storing, or parking motor vehicles."

 

The Sweeney case appears to address the rarely invoked auto business exclusion and may be a good case to review if you come across that issue. The opinion can be viewed online HERE.

 

Source:  “Court Summaries,” Pennsylvania Bar News (September 3, 2012) by Timothy L. Clawges.