Intoxicated Driver Not at Fault, Still Covered Under Policy

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.”