Tower Ins. Co. of New York v. Horn

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Brent Horn, who was not an employee of B&B Contracting, LLC and did not receive compensation for his work, volunteered to drive one of the company’s trucks on a day that B&B was short-staffed. While Horn was driving a B&B truck, Bradley Stafford, a B&B employee, fell from Horn’s truck and was killed. The administratrix of Stafford’s estate brought a wrongful death action against Horn. Horn responded that the liability policy issued by Tower Insurance Company of New York insuring B&B’s trucks covered the claim against him. Tower then filed an intervening complaint seeking a declaration of rights regarding its obligation to defend and indemnify Horn. The circuit court denied coverage to Horn, concluding (1) Horn was a permissive user of B&B’s truck and thus was an insured under Tower’s policy; but (2) an employee exclusion in the policy precluded coverage for Stafford’s death because Stafford was an employee of B&B. The court of appeals reversed, finding that the policy’s severability clause rendered the employee exclusion ineffective as to Horn, who was not Stafford’s employer. The Supreme Court affirmed, holding that the injured employee policy exclusion did not bar coverage of Horn, a permissive user. View "Tower Ins. Co. of New York v. Horn" on Justia Law