In Garcia v. Federal Ins. Co., Case No. SC06-2524 (Fla., Oct. 25, 2007), the Florida Supreme Court recently analyzed certified questions from the Eleventh Circuit regarding coverage for an additional insured under a homeowner’s policy.  The issue was whether the policy’s coverage of the additional insured was limited to vicarious liability for the acts of the named insured.

     Garcia was employed by Anderson.  With Anderson’s permission, Garcia drove Anderson’s vehicle to the supermarket where she struck a pedestrian.  The pedestrian sued Garcia and Anderson, alleging they were each independently negligent for allowing the brake pedal to wear down to bare metal, causing Garcia’s foot to slip.

     Garcia sought coverage under Anderson’s homeowner’s policy, which defined a covered person as “any other person or organization with respect to liability because of acts or omissions of you or a family member.”  Federal denied the claim, contending the policy only covered individuals who became vicariously liable for the acts or omissions of the name insured.  Because the victim sued Garcia for her own negligent acts, not for any acts or omissions by Anderson, Federal concluded Garcia was not an additional insured under the policy.

     The Florida Supreme Court determined the phrase “any other person with respect to liability because of acts or omissions of the name insured” was unambiguous and limited an additional insured’s coverage to vicarious liability.  The phrase “because of” meant an additional insured was only entitled to coverage concerning liability that was caused by or occurred by reason of acts or omissions of the named insured.  Because the accident victim sued Garcia for her own negligence in failing to maintain the brake pedal, and did not allege that Garcia was liable for Anderson’s acts or omissions, Garcia was not entitled to coverage.

     Having addressed the certified questions, the case was returned to the Eleventh Circuit, which affirmed the District Court’s decision that Garcia was not covered under the policy.  See Garcia v. Federal Ins. Co., 2007 U.S. App. LEXIS 27975 (11th Cir. Dec. 4, 2007).

Available here: garci001.PDF