When a policyholder purchases a separate endoresment providing insurance coverage for intentional torts of employees, insurers may not disclaim coverage by using vicarious liability as a shield. Further, when an insurer has a duty to defend, it becomes liable for all damages awarded against the policyholder, including attorney’s fees. This coverage cannot be read out of the policy. Under Ohio law, attorneys fees are compensatory in nature and thus cannot be excluded by erroneously classifying them as punitive damages. Further, when the plain language of the insurance policy requires an insurer to defend and pay the “full amount of judgment”, they are necessarily obligated to pay post-judgment interest on the entire judgment because they so defended.
World Harvest Church v. Grange Mutual
Court Ohio Supreme Court
Case Number 14-1161