KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL

FANews
FANews
RELATED CATEGORIES
Category Legal Affairs
SUB CATEGORIES General | 

Psychiatric centre not covered for excluded sex assault claim (US)

09 July 2021 Patrick Bracher, Norton Rose Fulbright
Patrick Bracher, Norton Rose Fulbright

Patrick Bracher, Norton Rose Fulbright

In June 2021 the Pennsylvania Superior Court held that a psychiatric centre had no claim against its insurer for a sexual assault lawsuit brought by two patients of the centre because the policy limited cover to claims brought by any employee.

The policy also excluded any claim which “involves an allegation of patient molestation” but the court did not have to deal with that issue.

The claims-made employment practices insurance policy covered wrongful acts including workplace tort (delict).  “Patient molestation” included the physical or mental health consequences “arising out of improper physical contact of a sexual nature with a plaintiff of the organisation”.  The insured alleged that the claim was employment-related because there had been negligent hiring, negligent supervision and a violation by employees of protected information of plaintiffs.  Seeing the claim was not brought by employees, former employees or applicants for employment, there was no cover under the policy for this reason alone.

[Penn Psychiatric Center Inc v United States Liability Insurance Co No. 1462 EDA 2020]

First published by: Financial Institutions Legal Snapshot

 

Quick Polls

QUESTION

South Africa’s Financial Sector Conduct Authority (FSCA) has the power to raise revenues by issuing administrative penalties and fines against non-compliant financial services providers, with this money flowing back to the Treasury… Does this, in your view, create a regulatory / government conflict of interest?

ANSWER

Absolutely, as conflicted as it gets
Maybe, I’m on the fence on this
No, the FSCA can do no wrong
The guilty must pay
fanews magazine
FAnews August 2021 Get the latest issue of FAnews

This month's headlines

Why it’s an amazing time to be an adviser and broker...
Power of the pack… In the company of women
POPIA pandemic - Tick tock goes the POPIA clock!
The unimaginable imaginable risk
How global cities could benefit from green dividends
Are life insurance products too complex?
Subscribe now