Client Being Sued for Sexual Abuse !

[Scottyj]

So as it reads, i have a solon that I write. The owners husband does massage therapy but at the time the policy was written they said "he no longer does that" anyways that is besides the point. Anyways an ex employees sister just got a message from this salon and now is saying the owners husband sexually abused her... after she paid for the message and even gave the guy a tip for services rendered.....

There is a back story too. The owners husband just came into a heap of money from his parents passing which this ex employee is aware of, and my client feels they are just digging for gold.

The main issue is the nature of this claim or issue the client wants to file is excluded, plain and simple. I expressed to her that this exclusion is more than common on all BOPs. She said she knows and has been aware of this exclusion on all her policies for the past 20 years of business and that she told her attourney this. Her attourney told her to file a claim anyways for "due dillegence" purposes... I am no lawyer but that seems fishy to me... could their lawyer be prepping for a possible loss and a plan B to come after me and the insurance company for that exclusion ? I have always been taught to offer a policy, highlight the limits of insurance, and then to avoide coverage defining and recomend to review policy documents upon policy delivery. In addition to this there is a note that states this on the front page of every insurance policy... "Please Review these documents for accuracy"

Any thoughts... I am a bit of a worry wart and know I did not do anything wrong in this case but a frivolus suit does scare me a bit being I have seen worse with E&O claims from other agents I know...

 

[senior-advisor-indiana]

Isn't that the point if a massage? They should just bill her extra for services rendered...

 

[Scottyj]

haha that was the joke in my office too.

 

[Dave020]

This will give new meaning to the term "happy ending"

 

[djs]

She needs to file the claim. Don't worry about this, but its the right thing to do. It will be denied.

The lawyer will need the denial. Most of these lawsuits go after the easy 'insurance' money. Once that is denied, they have to go after a person, which means its a lot more work for less money for the attorneys. They frequently will give up at this point, unless they think there is money to be had.

Either way though, you need to have them file the claim.

Dan

 

[russelltw]

Client has to read their contract, that's why the company mails it to them. I agree with djs, file the claim. Will not affect you most likely, unless you lied about something in the policy.

if this is the case, I would love to be in a court room to hear a lawyer tear this apart.

 

[Scottyj]

sounds good. Nope no lies on my part, Like I said I show limits of coverage, identify the deductable and NEVER Define Coverage to the client. I tell them to review the policy when recieved. This is the first situation I have had where a client is getting sued for something not covered so it worried me a bit, as I mentioned I am a worry wart and still new. The client was aware of this exlusion according to her prior to the incident so that is good to. My main issue was what the lawyer was doing. I did not know he needed it denied to move forward. Thanks for that info

 

[Josh]

My main issue was what the lawyer was doing. I did not know he needed it denied to move forward. Thanks for that info

Lawyer could just want to make sure he's not up against the insurance companies attorneys and is covering all his bases. I wouldn't worry about that much.

 

[djs]

Well, its better for the attorneys if the claim is approved, since they get paid more. But if its excluded, then it will be denied and the due diligence has been done.

Dan

 

[robtmccarthy]

If you were in New York you might have a problem, but I doubt the courts in Utah are as biased.

In NY you can sue for any reason and probably win... just a few examples, walking into a legally parked car, mold damage when you kicked the roofing contractor off the job for no reason and had some other contractor do the remaining work, and if for some reason you don't like that your policy gets audited even though it has for the past 5 years, just sue!

It is true though some attorneys drop the case once the insurance company denies, because the insurance companies love to settle for some quick cash.