Illinois Truck Accident Insurance Coverage Will Be Decided On By Illinois Supreme Court

In September 2008, a Illinois First District Appellate Court decision ordered Zurich American Insurance Company to cover a Illinois wrongful-death lawsuit against its insured Key Cartage and Terry Washington. Zurich American Insurance Co. v. Key Cartage, 2008 WL 4445122 (1st Dist., Sept. 30). The Illinois Supreme Court has agreed to hear this appeal in the case where Rose Services, an affiliate of Key Cartage, had leased the truck from Franklin Truck Group to haul waste.

It had been argued that Zurich should be obligated to provide co-primary insurance coverage because it issued a trucker’s insurance policy to Rose Services. Zurich argued that coverage was barred because a reciprocal coverage provision in its policy meant that unless it provided coverage to Franklin, Zurich was not obligated to provide coverage to Key.

The Illinois Appellate Court ruling, an issue of first impression, held that Zurich was required to provide omnibus coverage, which would extend the policy to any permissive driver of the truck. In their opinion the appellate court held that “[a]s a matter of public safety, Illinois public policy warrants mandatory omnibus coverage for commercial truckers that should not be limited by private agreement.”

Kreisman Law Offices has been practicing Illinois personal injury law and trucking accident cases for over 30 years, serving Cook County and its areas including Evanston, Melrose Park, Chicago Heights, and Evergreen Park.