Hanson v. Employers Mutual Casualty Co.

The Dispute
The Hanson family was injured in a car accident involving an uninsured driver. They tried to get compensation through their family business's insurance policy with Employers Mutual Casualty Company. The insurance company refused to pay, claiming that as shareholders of their small family corporation, the Hansons weren't covered under the business's uninsured motorist policy.

The Court's Decision
The court sided with the insurance company and dismissed the case. The judge ruled that people who own shares in a small, closely-held corporation are not automatically considered "insureds" under the company's uninsured motorist coverage, even if they work for and own the business.

What This Means for Workers
This ruling highlights an important gap in insurance protection for people who own and work in small family businesses. If you're both an owner and employee of a small corporation, you might not be covered by certain types of business insurance policies. Workers in similar situations should carefully review their insurance coverage and consider purchasing separate personal policies to ensure they're protected. Don't assume your business insurance will cover you personally in all situations.