Question

Two employees from the ABC Agency are horsing around and one is pushed into a machine that cut his leg. How will ABC's General Liability respond?

Option 1: It will cover the injury as it occurred during work hours.
Option 2: It will deny coverage as horseplay is not covered.
Option 3: It will cover the injury as it is work-related.
Option 4: It will deny coverage as it is considered intentional harm.

Answer 1

General Liability insurance from the ABC Agency is likely to deny coverage for an employee injury resulting from horseplay because it is often considered intentional harm and outside normal business operations. The misconception that the injury isn't significant or that insurance will automatically cover it does not change the exclusions set out in the insurance policy.

Step-by-step explanation:

The question concerns the response of ABC Agency's General Liability insurance to an accident occurring as a result of horsing around, where an employee sustains an injury. General Liability insurance primarily covers third-party claims of bodily injury, property damage, and advertising injury.

In this particular scenario, the correct answer would most likely be Option 4: It will deny coverage as it is considered intentional harm. Although the employees were 'horsing around' during work hours and the injury is, superficially, work-related, General Liability insurance typically excludes coverage for acts of misconduct which are not in the course of normal business duties, especially if the act could be seen as intentional.