California Appellate Tracker

Murphy v. AAA Automobile Ins. of Southern California (2025) 108 Cal.App.5th 476

April 10, 2025

Insurance, Particular Exclusions, Automobile Use, Compensated Carrying Exclusion, 1, 2

Plaintiff’s auto insurance policy had a compensated carrying exclusion which denied coverage when the car was being used to transport property for compensation. The exclusion barred collision coverage for an accident that plaintiff was involved in while carrying cannabis for his employer to its customers. Cannabis is property. Murphy was carrying it when the accident occurred. He was compensated by his employer for transporting the cannabis. The exclusion is not limited to independent contractors as opposed to employees. The independent contractors must buy commercial auto insurance. The employees must seek indemnity from their employers under Lab. Code 2802. The exclusion is clear, not contrary to public policy, and enforceable.

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California Appellate Tracker

Murphy v. AAA Automobile Ins. of Southern California (2025) 108 Cal.App.5th 476

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