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Workers’ Compensation Undercuts Employer Liability Exclusion, U.S. Appeals Court Rules

July 11, 2023

Since workers’ compensation shields an employer from liability, an insurer may not be able to rely on an employer liability exclusion in a commercial general liability policy to avoid claims. That’s the potentially costly message a federal appeals court has sent to Security National Insurance Co. (SNIC).

The Third Circuit of Appeals revived a $30 million claim against SNIC over employer liability coverage for a construction accident at a Philadelphia apartment building in which workers were injured when a third-floor fire escape balcony collapsed.

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