Geico ordered to Pay $5.2 Million to Woman who Contracted STD in a Car

Attorneys are usually not well versed in insurance policy language.?And unfortunately, sometimes insurance expert witnesses are not either.?They don’t apply the policy language correctly and try to find coverage where there is none. Or they miss coverage which can be found under the insurance contract. ?

The auto policy typically promises to “pay damages for ‘Bodily Injury’ … for which any insured becomes legally responsible because of an auto accident.”?And according to Missouri courts, “accident” can include contacting an STD in the back seat.?

?The woman had made a settlement offer of $1M, which GEICO denied, and the case went to an arbitrator.? The arbitrator awarded $5.2 Million. And the Missouri Court of Appeals upheld the award.

The panel stated that GEICO could have protected its interest by defending the insured.?“GEICO did not take advantage of this opportunity, instead denying coverage and refusing to defend insured,” according to the opinion. ?This shows the value of a bad faith ruling against an insurance carrier when that carrier refuses to defend its insured under the “duty to defend.”