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]