Penn Psychiatric Ctr., Inc. v. United States Liab. Ins. Co.

This was an appeal from an order dismissing an insurance coverage action. Penn Psychiatric (Insured) claimed that it was entitled to coverage under an employment practices insurance policy for an action brought against Insured and one of its therapists by two former patients who had no employment relationship with Insured. The trial court sustained United States Liab. Ins. Co.’s (Insurer) preliminary objections in the nature of a demurrer on the ground that the allegations in the underlying action did not fall within the definition of a “Wrongful Act” covered by Insurer’s policy. The Pennsylvania Superior Court affirmed, finding that the trial court correctly held that none of the claims in the underlying action were “Wrongful Acts” covered by the policy.

United-States-Liability