The question of the month deals with the phrase “arising out of”. Various insurance forms contain language excluding coverage for occurrences arising out of a particular set of circumstances, such as using a motor vehicle without permission or engaging in a certain type of business activity. But, what exactly does the phrase mean? Courts around the country have addressed this question, and of course, varying opinions exist. For help in understanding this common insurance policy phrase and for a thorough examination of the various judicial interpretations of the phrase, link onto the designated article in the FC&S Bulletins.

The court cases cited in the Dec Page come from Washington, Massachusetts, Louisiana, and Oregon . A Washington appeals court discusses the importance of the declarations page when a question of coverage arises. The Massachusetts court case deals with the “arising out of” language as it pertains to a claim for bodily injury arising out of the use of an auto. Longshoremen coverage versus general liability coverage is the issues in the Louisiana case. In that case, a longshoreman was injured while he was unloading steel bundles from a barge in the Calumet River . Since the worker filed a lawsuit based on general liability, the issue before the court was whether the longshore and harbor workers compensation exclusion on the general liability policy prevented coverage for the claim.

And finally, the diminution in value question was addressed by the Oregon Supreme Court. The insured's car was damaged and repaired but he then claimed he suffered a diminution in the value of the car and the insurer owed for this lost value; the insurer denied this coverage. The dispute went to the highest court in Oregon for a resolution.

Questions and Answers

A dispute exists over whether the BAP or the BOP should respond to a claim where the insured, who was cutting trees from a bucket truck at the time of the accident, damaged a house. Which policy should pay for the damage? See Business Auto Policy and Businessowners Policy Coverage Dispute. How is a pollution spill handled under a truckers policy if the insured has endorsement CA 99 48 attached to the policy? See Pollution Liability Coverage under Truckers Policy. A towed vehicle causes damage by striking a parked car. Would the liability coverage be provided by the insured's BAP, or would the coverage come from the policy for the vehicle being towed? See Towed Vehicle Causes Damage—Which Policy provides Coverage?

Allegations are made against the insured that confidentiality is not being maintained at its premises since files are stored unlocked. Does this meet the definition of personal and advertising injury in the CGL form? See Personal and Advertising Injury Arising due to Loss of Confidentiality?. Is nonowned auto coverage offered through the general liability policy, and if so, is the coverage worldwide? See Nonowned Auto Coverage Questions.

Purchasing Groups

Purchasing groups, through which products liability or completed operations liability coverage can be purchased on a group basis, are discussed. An overview and some court cases pertaining to the regulatory climate that affects purchasing groups are the topics for this article. See Purchasing Groups.