“Arising out of” has been a term disputed by courts across the country to try and come to a conclusion regarding its meaning. This term has been called both ambiguous and unambiguous, which easily shows you the confusion present when it comes to court filings and legal documents. This term is used many times in insurance documents to describe a situation where the insurance would cover the incident, making it seem fairly clear in regards to its meaning, but without a specific definition of the term when a claim makes it to court both sides tend to argue the meaning of the term in some way.
The term “arising out of” is fairly simple to explain; let me give it a try. When you have homeowner’s insurance that covers injuries to parties that are present in your home this term may be in place stating “except when arising out of actions pursuant to a business operating at the residence”. What this means is the insurance would cover injuries to parties at your home, unless the injury is a result of your running a business from your home such as a daycare center. This is important for you to understand so you know what protections you need.
In order to make sure you have the protection you need in your home, at work or in your vehicle you need to clearly understand the meaning of “arising out of” to make the best use of your insurance. For more information, call Matsen CEO, R. Glenn Matsen, directly on his personal extension at 916-306-5902.