If Nate drives his delivery van through the window of the dealer's showroom after receiving a large repair bill, will his business auto policy cover the damage?

If Nate drives his delivery van through the window of the dealer's showroom after receiving a large repair bill, will his business auto policy cover the damage?

• A. Yes, because he was provoked.
• B. No, the expected or intended exclusion will rule out coverage.
• C. Yes, but only on an excess basis.
• D. No, due to the contractual liability exclusion.

Answer: (B)

The business auto policy is designed to cover accidents that are unintentional. In this scenario, Nate intentionally drove his delivery van into the dealer's showroom, which indicates that the act was deliberate. Insurance policies often include an expected or intended exclusion, which excludes coverage for damages resulting from intentional acts. Therefore, because Nate's actions were purposeful and not accidental, the expected or intended exclusion would apply, ruling out coverage for the damages caused by his actions. Understanding that insurance is built around covering unforeseen incidents rather than intentional damage is critical in assessing policy coverage in scenarios like this one.

The business auto policy is designed to cover accidents that are unintentional. In this scenario, Nate intentionally drove his delivery van into the dealer's showroom, which indicates that the act was deliberate. Insurance policies often include an expected or intended exclusion, which excludes coverage for damages resulting from intentional acts. Therefore, because Nate's actions were purposeful and not accidental, the expected or intended exclusion would apply, ruling out coverage for the damages caused by his actions.

Understanding that insurance is built around covering unforeseen incidents rather than intentional damage is critical in assessing policy coverage in scenarios like this one.