SB 862 – Relating to Insurance Coverage for Vehicle Leases

On Monday, March 18, SB 862 by Senator Kelli Stargel (R-Lakeland) was heard before the Senate Banking and Insurance Committee and was reported favorably with 5 yeas and 1 nay. AIF stood in support of this legislation.

Florida’s Dangerous Instrumentality Doctrine (DID) was created in the early 20th century, a time where automobiles began traveling on public roads. The doctrine has been expanded far beyond the borders of its original intent and now applies to off-highway vehicles such golf carts, tractors, and construction equipment. The doctrine holds owners or lessors liable for the harm caused by an operator, even when the lessor is not in control of the equipment or vehicle at the time of the incident. Florida is the only state in the country where DID is applied in this manner.

This bill provides that lessors of special mobile equipment are not liable for the acts of the lessee or lessee’s agent or employee if the lease agreement requires the lessee to maintain insurance with limits of at least $100,000/$300,000 for bodily injury liability and $50,000 for property damage liability, or at least $500,000 for combined property damage liability and bodily injury liability. Special mobile equipment are vehicles not designed or used primarily to transport persons or property and that are only incidentally operated or moved over a highway. Examples include ditchdigging apparatus, well-boring apparatus, and road construction and maintenance machinery, draglines, self-propelled cranes and earthmoving equipment.

SB 862 will now move to the Senate Judiciary Committee.

AIF supports the protection of owners and lessors from vicarious liability which is harmful to Florida’s business community.