Car Insurance Government Exclusions

Are you a government employee who got into a car accident while on the job and was denied coverage for your personal uninsured/underinsured motorist (UM/UIM) policy provisions based on an exclusion for payments that would go to benefit a government entity? Car insurance government exclusions take coverage away from government workers all the time, but they are not always final. Government employees may have coverage under their own automobile insurance policies even if they are paid benefits, such as workers' compensation, through their government employer.

For example, State Farm has an exclusion that it claims allows it to deny coverage if there is a workers’ compensation lien involved with the case. The exclusion states that “there is no coverage […] to the extent it benefits: any workers’ compensation or disability benefits insurance company […] or any government or any of its political subdivisions or agencies.”

However, the Office of Workers Compensation Program (OWCP) has specific regulations that make it clear that the OWCP does not have a lien if the recovery is from the government employee’s own insurance company. Therefore, the exclusion is inapplicable to this scenario. The insurance company’s denial of your own personal insurance benefits would breach the policy provisions and may be considered bad faith, which opens up an entirely new avenue of potential legal complications and lawsuits.

If you’ve been denied fair coverage and recoveries by an auto insurance company that says you’re excluded due to your work as a government employee, then Golomb Legalcan help you figure out your options and pursue fair compensation. Our law firm is also available to assist other law firms nationwide with car accident clients who are facing a similar situation, so please don’t hesitate to contact us if you’re not sure how to best help your client in this unusual and complex situation. To arrange a free consultation, dial (215) 278-4449 at any time.