Worker's Death Not Covered by E & O Policy
Barry Zalma
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To compel coverage under an errors and omissions policy, Roadway Services, Inc. sued its insurer, Travelers Casualty and Surety Company of America seeking defense of a wrongful death case claiming Roadway failed to provide a safe place to work for the decedent. Travelers argued it has no duty to cover Roadway's claim because of clear and unambiguous exclusions.
In Roadway Services, Inc. v. Travelers Casualty And Surety Company Of America, No. 22-3337, United States Court of Appeals, Sixth Circuit (December 29, 2022) the Sixth Circuit resolved the dispute.
FACTS
In 2018, a driver struck and killed a Roadway employee while he was on the job. His widow sued Roadway for wrongful death, alleging it failed to maintain safe working conditions. Roadway did not seek coverage under its employment-liability insurance contract. Instead, it asked Travelers to pay for its defense out of a directors-and-officers insurance contract. Travelers refused, citing an exclusion in the policy. Roadway sued to compel coverage. Both parties moved for summary judgment and the District Court, finding the policy ambiguous, ruled for Roadway. Travelers appealed.
THE INSURANCE POLICY
Under Ohio law an insurance policy is generally interpreted like any other contract. Travelers "will not be liable for loss for any claim . . . based upon or arising out of any employment related wrongful act."
ANALYSIS
The exclusion bars Roadway's claim since the parties agree the suit qualifies as an employment-related wrongful act. The district court's judgment was, therefore, reversed, and the case was remanded with instructions to enter judgment for Travelers on the coverage claim.
ZALMA OPINION
When an employee dies on the job the exclusive remedy available to the heirs is the workers' compensation system. To gain a larger recovery the decedent's spouse filed a wrongful death action claiming the employer was negligent for failing to provide the decedent with a safe place to work. Roadway had employers liability insurance but chose to claim against an E&O policy only to find that a clear and unambiguous exclusion defeated their claim.
(c) 2023 Barry Zalma & ClaimSchool, Inc.
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Posted on April 1, 2026 by Barry Zalma
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ This issue contains the following articles about insurance fraud:
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Read the following article and the full issue of ZIFL at https://zalma.com/blog/wp-content/uploads/2026/03/ZIFL-04-01-2026-1.pdf...
ZIFL – Volume 30, Issue 7 – April 1, 2026
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Post number 5314
Posted on April 1, 2026 by Barry Zalma
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ This issue contains the following articles about insurance fraud:
No One is Above the Law – Not Even a Police Officer
Police Officer Convicted for Fraud in Reporting an Accident Affirmed
Police Officer Should never Lie about Results of Chase
In State Of Ohio v. Anthony Holmes, No. 115123, 2026-Ohio-736, Court of Appeals of Ohio, Eighth District, Cuyahoga (March 5, 2026) a police officer appealed criminal conviction as a result of lies about a high speed chase.
Read the following article and the full issue of ZIFL at https://zalma.com/blog/wp-content/uploads/2026/03/ZIFL-04-01-2026-1.pdf...
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