Nationwide Mutual Insurance Co. v. Pasiak

At issue was whether an insurer was obligated to indemnify a business owner under a personal insurance policy for liability arising form his false imprisonment of his company’s employee at her workplace. The business owner appealed, challenging the appellate court’s determination that such liability fell under the business pursuits exclusion to coverage under his personal umbrella policy. The Supreme Court reversed, holding (1) neither the appellate court nor the trial court employed the correct standard for determining whether the business owner’s tortious conduct was an occurrence “arising out of” the business pursuits of the insured; (2) remand was necessary to determine whether the business pursuits exception applied under the correct standard; and (3) Plaintiffs could not prevail on their alternative grounds regarding other exclusions and public policy as a matter of law. View "Nationwide Mutual Insurance Co. v. Pasiak" on Justia Law