Insurance companies not forced to defend malicious defamation claims

The Eighth Circuit U.S. Court of Appeals ruled that an insurance company is not compelled to defend an orthodonic business whose employee posted libelous statements about a competitor online. The court held that the applicable insurance policy precluded coverage for acts done with intent to injure. (Law360, March 19, 2015, by Jeff Sistrunk)

“…S&B [Sletten & Brettin Ordodontics] argued that by enumerating defamation while excluding coverage for intent-to-injure claims, the policy created an ambiguity that should be resolved in its favor. The court disagreed and interpreted the policy as providing coverage for defamation, in general, just not defamation that was specifically intended to injure the claimant,” wrote Alex J. Yastrow and Joanna M. Roberto, The Insurance & Reinsurance Report, March 25, 2015.