In a case decided Monday, June 4, 2018, the California Supreme Court held that an insured employer that is sued for negligent hiring, retention, or supervision of an employee is entitled to coverage even when the alleged damage is caused by the intentional act of an employee.
In Liberty Surplus Insurance Corp. Ledesma & Meyer Construction Co. 2018 DJDAR 5349, the defendant employer was sued for the negligent hiring, retention and supervision of a construction employee, who allegedly molested a 13 year old girl. In rejecting Liberty’s arguments that the employee’s intentional acts should not be covered, the Court held that if accepted, such an argument would leave employers without coverage for negligent hiring, retention, and supervision whenever an employee’s conduct is deliberate. The Court stated that absent an applicable exclusion, employers may legitimately expect coverage under general liability policies for such claims, just as they do for other claims of negligence.
For more information about this case or other employment law related issues, contact the attorneys at JBB Law today.
