Stewart’s insurer not liable for damages related to Ward incident

A district court ruling determined that Tony Stewart’s insurer was not obligated to pay for damages the racer incurred as a result of his involvement in the unfortunate accident that claimed the life of fellow competitor Kevin Ward in 2014

Insurance News

By Lyle Adriano

A court ruled Friday that Tony Stewart’s insurer, Axis Insurance, was not obligated to cover any damages or fees related to the August 9, 2014 incident where Stewart fatally struck fellow sprint car racer Kevin Ward.

The two racers were competing in a sprint car event at Canandaigua Motorsports Park when Ward hit the wall. Ward then exited his car and walked down the track, gesturing at Stewart; he was unfortunately clipped by the right-rear tire on Stewart’s car. Stewart was not charged in the incident, and he claimed that he did not see Ward walking on the track until it was too late.

Ward’ family, however, filed a civil lawsuit against Stewart for his involvement in the accident.

Stewart’s insurer, Axis, argued that it was not obligated to cover for him. The company maintained that Stewart’s insurance policy outlined specific events for the policy, which excluded other events such as the race at the heart of the lawsuit.

U.S. District Court Judge David Hurd of the Northern District of New York agreed with Axis, and ruled in favor of the company.

“[The] Policy is unambiguously limited by the Schedule of Events endorsement, which does not include the ESS Event where Stewart struck Ward. Therefore, Axis is not obligated to provide a defense or indemnification to Stewart in connection with the Ward Action,” Judge Hurd said in a statement Friday.

Stewart is now obligated to pay his attorney fees and other expenses as a result of a settlement or judgement regarding the lawsuit, reported Yahoo! Sports.

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