American States Insurance v. Progressive Casualty Insurance

Opinion

BUTZ, J.

Liability insurance policies for commercial motor vehicles typically include an “omnibus clause.” As pertinent here, that clause defines as an “insured” one who is vicariously liable for the conduct of a named insured or a permissive user in using or operating the covered vehicle.

In this appeal, we conclude that such an “omnibus clause” may make a person or entity that is potentially vicariously liable under the peculiar risk doctrine an “insured,” and thereby entitled to a defense pursuant to the insurance policy. Under the peculiar risk doctrine, one may be held vicari ously…