Appeals Court Says Professional Services Exclusion Does Not Bar Insurance Coverage for Claims Against Hospital
Highlights
Court rules commercial general liability policy provides coverage for claims of sexual misconduct and negligence against hospital
Professional services exclusion does not apply to bar coverage
Allegations of sexual misconduct or negligent hiring and supervision do not arise out of professional services provided by hospital to patient
Hospitals and other healthcare facilities are sometimes exposed to liability as a result of bad acts by their employees, such as when an employee is accused of assault or sexual misconduct involving a patient. Expecting insurance coverage for such situations under a general liability policy can be problematic because of exclusions in the general liability insurance policies that attempt to carve out coverage for conduct arising from or related to “professional services” provided to patients.
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