Abuse Or Molestation Exclusion Bars Coverage For Sexual Assault Of Insured's Employee While Employment Exclusions Do Not

• Published date: 25 July 2025
• Subject Matter: Employment and HR, Insurance, Employee Benefits & Compensation, Employee Rights/ Labour Relations, Insurance Laws and Products
• Law Firm: Phelps Dunbar LLP
• Author: Nicholas J. Heintzman, Christy Maple and Katie Myers

The U.S. District Court for the Southern District of Georgia recently ruled that an insurer must provide coverage to its insured with respect to a civil lawsuit involving allegations of sexual assault. The case, BOJ OF WNC, LLC d/b/a Bojangles Famous Chicken N Biscuits v. Westfield National Insurance Company (Civil Action No. CV 122-124), stemmed from a lawsuit filed by a minor employee of the insured restaurant franchisee, who accused the restaurant manager of raping her during her work shift. Specifically, the plaintiff alleged that the manager confined her in a restroom he instructed her to clean, forcibly removed her clothing, and raped her. The underlying case was ultimately settled. The insurance policy at issue included both a Businessowners Liability Coverage Form (the BLC Form) and a Commercial Liability Umbrella Coverage Form (the CLUC Form).

Abuse or Molestation Exclusion

The Court first addressed the BLC Form's...