Business Auto and Claimant's Lost Wages

A claim has been presented against our company and our insured for loss of use and lost wages by the claimant. Our insured is a valet parking company with coverage from a Business Auto Policy with a garage keeper's endorsement. The claimant's vehicle was damaged while in the care, custody, and control of the valet company for which we are legally liable. The claimant is currently trying to file for reimbursement for loss of use and income resulting from this claim. Specifically, he's claiming the day his vehicle was damaged he was unable to attend a conference that he had paid for in advance because of this accident. Also, the claimant is a marketing representative who charges customers by the hour and he is trying to file lost wages for the 3 hours he spent dealing with this claim. Is there any coverage for loss of use and wages for claimants on this portion of the Business Policy?

Ohio Subscriber

Under the garagekeepers endorsement (CA 99 37), the insurer is to pay:

all sums the “insured” legally must pay as damages for “loss” to a “customer's auto” or “customer's auto” equipment left in the “insured's” care while the “insured” is attending, servicing, repairing, parking or storing it in your “garage operations”

The Additional Definitions section of the policy specifies that “loss” means direct and accidental loss or damage and includes any resulting loss of use.

Because “loss of use” is not further defined or explained within the policy, if the claimant is able to demonstrate that, because of this loss, he was unable to attend a conference he had already paid for and that he lost wages while dealing with the claim, he should be entitled to payment for loss of use of the vehicle resulting in the lost advance payment for the conference and the lost earnings.

 

 

 

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