Farm Bureau Insurance’s “Automobile Business” Exclusion is Against Louisiana’s Public Policy

In Sensebe v. Canal Indemnity Company, 2010-0703 (La. 1/28/2011), the Louisiana Supreme Court held that an “automobile business” exclusion in a Farm Bureau insurance policy violates Louisiana’s public policy of requiring insurance coverage as expressed in the Louisiana Motor Vehicle Safety Responsibility Law, La. R.S.32:851 – 1043. Specifically, the Court found that the “automobile business” exclusion conflicts with the “statutory omnibus clause” contained in La.R.S. 32:900(B)(2), which requires coverage for all permissive drivers.

See also Marcus v. Hanover Insurance Company, 1998-2040 (La. 6/4/99), 740 So.2d 603, 606, wherein the Louisiana Supreme Court struck down a “business use” exclusion as being in direct conflict with the statutory omnibus clause.

The insurance lawyers at Due, Guidry, Piedrahita & Andrews, can assist you with insurance claims involving serious injuries sustained in car wrecks. Contact the experienced Louisiana Injury Lawyers at (225) 929-7481 to schedule a free consultation.