SDV Insights

PA Clarifies Coverage for Additional Insureds


On May 26, 2015, the Supreme Court of Pennsylvania issued its ruling in the Mutual Benefit Insurance Co. v. Politsopoulos case, correcting decades of confused case law interpreting the standard employer’s liability exclusion in CGL policies. Pennsylvania courts had long held, under a principle announced in a 1967 automobile liability case, that the employer’s liability exclusion barred coverage whenever an employee of a named insured sought redress for their injuries, even if the suit was brought against an additional insured. However, the Mutual Benefit case decidedly overturned that precedent with respect to standard form CGL policies, thereby modernizing Pennsylvania’s approach to the employer’s liability exclusion.

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