CT INSURANCE LAW -- Appellate Court holds claim for posttraumatic stress disorder barred by exclusion for business pursuits

2016-01-21 | Joseph M. Busher

Category: Insurance

Joseph M. Busher

The applicable insurance policy provided that it did not apply to “an occurrence arising out of the business pursuits or business property of an insured.”  The Connecticut Appellate Court holds that this exclusion barred coverage for an attack that occurred to the plaintiff while at the defendant’s home for a business purpose.  The underlying facts involve a plaintiff who worked for a construction company.  She was at the owner’s home when a masked intruder entered and demanded that she open the safe.  She was assaulted and threatened.  The business owner later returned, struggled with the intruder, and discovered that it was a longtime friend.  The business owner allowed the friend to leave and asked the plaintiff to remain at the office.  Eventually the intruder was arrested and convicted.  The plaintiff developed posttraumatic stress disorder and sued the business owner.  Reversing the Superior Court, which had found a duty to defend, the Appellate Court holds that the expansive “arising out of” language in the exclusion applied because the injuries “were connected with, had their origins in, grew out of, flowed from, or were incident to” the business owner’s “business pursuits”.  Nationwide Mutual Ins. Co. v. Pasiak, AC 36922 (Nov., 2015)

Jackson O’Keefe, LLP, has several attorneys who routinely focus on insurance law issues.  If you have an insurance question or litigation matter involving a GL, E&O, D&O, homeowners,  or auto policy, contact us for assistance at 860-278-4040.

Jackson O’Keefe has been practicing in the insurance field since the 1950s. The firm was co-founded by a former Insurance Commissioner for the State of Connecticut.  The firm is pleased to have received the highest Martindale-Hubbell rating of “AV.”  It is recognized in A.M. Best’s Recommended Insurance Attorneys.  It is also recognized in the Bar Register of Preeminent Attorneys.  Additionally, several of our partners have been peer-reviewed by Thomson Reuters as “Super Lawyers” qualifying as among the top five percent of practicing attorneys in Connecticut.  We are active participants in the Claims and Litigation Management (CLM) Alliance.  We are also recognized in Best's Directory of Recommended Insurance Attorneys.

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