Interested in training for your team? Click here to learn more

Insurance Omnibus Clauses: Determining Permissive User Status in Auto Liability Cases; Exclusions and Limitations

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Monday, January 13, 2025

Recorded event now available

or call 1-800-926-7926

This CLE webinar will discuss omnibus clauses in auto insurance policies and the coverage issues arising from permissive use in auto liability claims. The program will offer guidance on how to determine the difficult question of whether an individual is a permissive user as well as address exclusions and limitations on coverage.

Description

An "omnibus clause" in standard automobile liability policies (or auto endorsements to general commercial liability policies) extends coverage to those not named in the policy but who are using a covered auto with permission. A typical scenario is a commercial vehicle being driven by a company employee or driving their own vehicle. Multiple policies and allocation issues may also come into play, such as when a business has hired a third party and both have policies that might cover the accident.

Courts rely on many different factors when determining whether the driver is a "permissive user" entitled to coverage. Assuming the insured has the capacity to grant permission, questions arise regarding what constitutes permission, whether effective and valid permission must be express or can be implied, the scope of permission and how far a driver may deviate from the terms of the grant, and whether the original permissive user may grant permission to others, to name a few.

Moreover, even if the driver is found to be a permissive user, coverage might still be denied for other reasons, and counsel for the defendant driver or an injured plaintiff needs to understand the options and how to avoid losing coverage.

Listen as this experienced panel of insurance coverage lawyers discusses how to determine whether the driver qualifies as a "permissive user," the various positions taken by different jurisdictions under recurring scenarios, and practices and strategies for navigating coverage issues for the permissive user.

READ MORE

Outline

  1. Omnibus insurance clauses: history, wording
  2. Applicable statutes
  3. Establishing permissive use
    1. Capacity
    2. Grant of permission: express or implied
    3. Scope of permitted use
      1. "Initial permission"
      2. "Conversion"
      3. "Minor deviation"
      4. Specific situations
        1. Subsequent permissions
        2. Ridesharing
        3. Unlicensed drivers
        4. Rental car
        5. Use vs. operation
        6. Multiple policies and allocation issues
        7. Effect of third-party agreements, such as master service agreements
  4. Exceptions and limitations of coverage
  5. Rights of an injured named insured against the permissive user
  6. Strategies where permissive user denied coverage for other reasons

Benefits

The panel will discuss these and other key questions:

  • Are permissive drivers entitled to access the entire policy limits or can insurers limit the proceeds for permissive drivers?
  • If more than one policy applies, how are proceeds allotted?
  • Do financial responsibility laws override any policy exclusions for unauthorized users?
  • In determining whether permissive use exists by express permission, what are good questions to ask? For establishing implied permission?

Faculty

Hernandez, Michael
Michael Patrick Hernandez
Partner
Hepburn – Hernandez – Jung

Mr. Hernandez is known in the legal community as an expert trial strategist and has a reputation for winning the most...  |  Read More

Perry, James
James G. Perry
Senior Trial Counsel
Atticus Injury Law

Mr. Perry is a trial and litigation attorney with Atticus Injury Law, PC, with a focus on personal injury and...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video