The U.S. Court of Appeals for the Ninth Circuit has reversed a lower court's decision and held that an insurer was obligated to compensate a man injured in a motor vehicle accident caused by its policyholders' intoxicated employee because she had permission to use the vehicle. The case is McGee v. Zurich American Insurance Co., 2021 U.S. App. LEXIS 7611.

Underwood Bros Inc., doing business as AAA Landscape was insured with a general insurance policy from Zurich American Insurance Company. The policy provided coverage for auto accidents, and defined an insured as anyone "using with your permission a covered 'auto' you own."

AAA Landscape assigned a company vehicle to an employee, Elizabeth Foust, in 2012, and three years later she was involved in a car accident with James McGee. McGee was found to be at fault for the accident, but Foutz was cited on the scene for driving while intoxicated.