Cover under US liability policy does not extend to arson by hospital patients
In August 2017, a US federal court held that the indemnity for ‘activities’ on behalf of the insured under a liability policy of an insured and its members does not extend to cover arson or attempted suicide by two mentally ill patients who attempted to commit suicide by burning down their apartments owned and managed by Suburban Park Apartments. The fires, which were started in two separate incidents, could not be said to constitute ‘activities on behalf of the insured’ under an extension clause of the policy, and as such fell outside the scope of policy coverage.