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Insurance

Aug. 3, 2010

Is Liability Coverage for Negligent Hiring And Supervision No More?

A cab driver fires one shot after a passenger assaults him. Can the liability insurer of the cab company deny coverage by arguing that the incident was not an "accident?" By Philip H. Thompson and Timothy M. Thornton of Nelsen, Thompson, Pegue & Thornton.

By Philip H. Thompson and Timothy M. Thornton

Counsel for policyholders and insurers have long debated whether negligent hiring and supervision constitutes an accident covered under liability insurance when the "negligently" hired or supervised person intentionally injures another. The "fat lady" just might be "singing" because that debate appears to be over.

In L.A. Checker Cab Cooperative Inc. v. First Spe...

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