Liability Exposure

Real-life Claim Examples

Accidents happen all the time. And it only takes one to put your clients’ personal wealth at risk. Here are some
examples…

Auto Liability
• A teenage driver traveling in excess of 100 mph was in an auto accident. A teenage passenger in the vehicle suffered
extensive injuries that left them a quadriplegic. The case was tried with a jury verdict of $21 million.
• A driver fell asleep at the wheel. When the car rolled over, the passenger inside was left a paraplegic. A jury awarded the
passenger $22 million.
• A woman struck by a car while crossing an intersection was awarded $29.5 million.

Premises Liability
• A dog escaped from a locked room at a party. During the excitement, the dog bit a guest who required medical attention and
was left with a permanent scar. The guest sued the insured, alleging physical injuries and emotional distress.
• A houseguest dove into a pool, sustained injuries and became paralyzed from the waist down. The guest claimed that the pool
area was not properly lit and sued for $30 million.

Domestic Staff
• The playmate of an insured’s daughter accidentally struck a domestic employee who was babysitting the children.
• After terminating a housekeeper, an insured hired a highly qualified — though younger — replacement. The insured was sued
by the former housekeeper for alleged age discrimination.
• An individual terminated his gardener due to habitual tardiness. The gardener filed a wrongful termination lawsuit stating he
was never advised of specific work hours.

Not-for-Profit Board Liability

Service Organization Sued by Former Employee
• A local chapter of a national service organization was named in several articles alleging mismanagement and misappropriation
of funds. Further investigations revealed that the chapter's executive director approved a number of questionable payments —
some of which were disclosed but misrepresented, and others of which the board had no knowledge. The board members
authorized a public response and temporarily suspended certain powers of the executive director, who subsequently resigned.
The executive director later filed claims for defamation, wrongful termination and discrimination, seeking damages in excess of
the chapter's $1 million policy.

Residential Board Sued for Discrimination

• The board of a residential cooperative building was sued by an applicant who was denied approval to purchase a unit. The
applicant claimed the board discriminated against him based on his sexual orientation. The applicant later added a
defamation count to the lawsuit.

Wrongful Eviction
• An insured ended a relationship with a domestic partner and asked the partner to move out of the home. The partner sued with
an allegation of wrongful eviction.

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