Unanimous Calif. Supreme Court Finds Negligent Hiring and Supervision Invokes Coverage
It's official: the negligent hiring and supervision of an employee who goes on to intentionally injure a third party may constitute an “occurrence” that triggers coverage under a general liability insurance policy.
June 20, 2018 at 12:47 PM
2 minute read
Left to right: JoLynn (Pollard) Scharrer and Jennifer Tung of Hunt Ortmann. Liberty Surplus Insurance v. Ledesma & Meyer Construction Co. Minkler v. Safeco Insurance Co. of America Delgado v. Interinsurance Exchange of Automobile Club of Southern California Minkler Minkler Minkler Delgado Delgado Delgado Merced Mutual Insurance v. Mendez Foremost Insurance v. Eanes American Empire Surplus Lines Insurance v. Bay Area Cab Lease State Farm Mutual Automobile Insurance. v. Longden Maples v. Aetna Casualty & Surety American Empire Ledesma
Liberty's arguments, if accepted, would leave employers without coverage for claims of negligent hiring, retention, or supervision whenever the employee's conduct is deliberate. Such a result would be inconsistent with California law, which recognizes the cause of action even when the employee acted intentionally. The requirements for liability of this kind are not easily met, but they are well established. Absent an applicable exclusion, employers may legitimately expect coverage for such claims under comprehensive general liability insurance policies, just as they do for other claims of negligence.
Ledesma JoLynn M. (Pollard) Scharrer is a shareholder at Hunt Ortmann and leads the firm's employment law group and insurance group. She can be reached at [email protected]. Jennifer Tung is an associate at the firm. She handles a broad range of commercial and construction litigation matters, and can be reached at [email protected].
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