Only Vehicles Listed on Policy as a “Covered Auto” Are Entitled to Defense or Indemnity
Post 5198
See the full video at https://rumble.com/v6zn0p0-unambiguous-policy-language-applied.html and at https://youtu.be/gWtoQfgbsok, and at https://zalma.com/blog plus more than 5150 posts.
ATV Not a Covered Auto
In Acuity, a Mutual Insurance Company v. Peak View Roofing Co., Jeffrey Pierce, and Ty Smith, Civil Action No. 24-cv-01300-MDB, United States District Court, D. Colorado (September 23, 2025) resolved an insurance coverage dispute concerning the duty of the insurer to defend a civil lawsuit.
KEY FACTS:
Parties Involved:
The case involves Plaintiff Acuity, Defendant Smith, Defendant Pierce, and Peak View Roofing Co. (PVRC).
Underlying Action:
Defendant Smith alleges he was injured on August 19, 2022, while riding as a passenger in a 2018 Polaris Rzr ATV owned by Bluethread Services, LLC d/b/a Peak View Roofing, LLC and operated by Defendant Pierce.
Insurance Policy:
The Rzr was insured under the Policy as “equipment” rather than a “business auto”. Plaintiff Acuity sought a determination that it has no duty to defend or indemnify Pierce or PVRC .
LEGAL PRINCIPLES:
Contract Interpretation:
An insurance policy is a contract that should be interpreted in line with well-settled principles of contract interpretation. Courts should give the words in the contract their plain and ordinary meaning unless contrary intent is evidenced in the policy. Courts construe coverage provisions liberally in favor of the insured to provide the broadest possible coverage.
Policy Terms:
The policy specifically states that coverage applies only to those autos shown as covered autos. The Rzr is listed as “Scheduled Contractor’s Equipment” under the Policy’s Commercial Inland Marine Coverage and is not, therefore, a covered auto.
Undisputed Material Facts
The Rzr was not listed on the Policy as a “Business Auto.” The Rzr is listed in the Policy as “Scheduled Contractor’s Equipment” under the Policy’s Commercial Inland Marine Coverage. The Contractor’s Equipment Coverage Form does not include coverage for bodily injury or create a duty of defense or indemnity on the part of Acuity.
ANALYSIS
Whether there is a genuine dispute as to a material fact depends upon whether the evidence presents a sufficient disagreement to require submission to a jury or conversely, whether the evidence is so one-sided that one party must prevail as a matter of law.
Here, the threshold question was whether the Court should look beyond the explicit terms of the Policy-which lists the Rzr as equipment-in an attempt to uncover some underlying intent to include the Rzr as a covered auto. The Court saw no basis for doing so.
While it is true that a court should look to the parties’ intent to resolve “ambiguities” in an insurance policy, this is not a case of ambiguity. Indeed, there can be no dispute over the meaning of certain Policy terms. The language is explicit and clear, the Rzr is covered as equipment. Courts may not force an ambiguity in order to resolve it against the insurer.
Based on the undisputed Policy language and declarations, the Rzr was equipment, not a covered auto at the time of the accident. Therefore, Plaintiff does not have a duty to defend or indemnify Defendant Pierce or PVRC in the Underlying Action.
Plaintiff Acuity’s Motion for Summary Judgment Pursuant to F.R.C.P. 56 was granted.
ZALMA OPINION
If the plaintiff’s wanted the Rzr ATV to be considered a covered auto they only needed to ask Acuity to insure it as such not as “equipment.” Since the plaintiff intended to insure the ATV as equipment accidents causing injury due to the operation of the Rzr there was no coverage for defense or indemnity under the auto liability insurance.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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The Professional Claims Handler
Post 5218
Read the full article at https://www.linkedin.com/pulse/zalma-philosophy-claims-handling-part-8-barry-zalma-esq-cfe-zdwsc, see the full video at https://rumble.com/v70zl4s-the-zalma-philosophy-of-claims-handling-part-8.html and at https://youtu.be/MIYcF71ffRQ, and at https://zalma.com/blog plus more than 5200 posts.
Claims Commandment X – Thou Shall Not Pretend to be a Lawyer
Some experienced and professional claims people know the law in their area of expertise better than most lawyers.
Adjusters should be adjusters and leave lawyering to lawyers. Similarly, lawyers should be lawyers and never try to be adjusters.
Claims Commandment XI – Thou Shall Empathize With the Claimant
Everyone presenting a claim is unhappy, disturbed, shocked, injured and needs help.
Empathy is identification with and understanding of another’s situation, feelings, and motives. It is the ability to understand another person’s circumstances, point of view, thoughts, and feelings....
HOW TO CREATE AN EXCELLENCE IN CLAIMS HANDLING PROGRAM
See the full video at https://rumble.com/v70wb2i-the-zalma-philosophy-of-claims-handling-part-6.html and at https://youtu.be/tL5nDKPEs40 and at https://zalma.com/blog plus more than 5200 posts.
Post 5217
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry.
An Excellence in Claims Handling program begins with a statement in the insurer’s claims manual or statement of professionalism that it is dedicated to providing excellence in claims handling to every insured who presents a claim.
The excellence in claims handling program should include, at a minimum:
A series of lectures supported by text materials explaining:
A definition of insurance.
How to read and understand an insurance policy.
How to interview an insured, witness, or claimant.
How to assist an insured in the insured’s obligation to ...
The Professional Claims Handler
Post 5216
Read the full article at https://www.linkedin.com/pulse/zalma-philosophy-claims-handling-part-5-barry-zalma-esq-cfe-jde8c, see the full video at https://rumble.com/v70q4x8-the-zalma-philosophy-of-claims-handling-part-5.html and at https://youtu.be/6b9tZQsEkB4, and at https://zalma.com/blog plus more than 5200 posts.
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry.
Standards to be a Professional Claims Adjuster
The Insurance claims professional should be a person who:
1. Can read and understand the insurance policies issued by the insurer.
2. Understands the promises made by the policy.
3. Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
4. Are competent investigators.
5. Have empathy and recognize the difference between empathy and sympathy.
6. ...
The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
